By admin       2019-02-21

Cotton futures is heading for fourth straight month loss in February and also fallen to lowest in 10 months on higher domestic supplies than the prevailing demand from the bulk buyers. The spot prices have also slipped below minimum support price but active procurement by Cotton Corporation of India (CCI) is supporting prices above Rs 20,000.Going forward, a decline in cotton price may be limited due to government support price. Therefore, we need certain fundamental triggers like increase in exports from the country in case of improving international cotton price following resolution of a trade dispute between China and US, lower crop outlook, forecast of deficient monsoon rains and weaker rupees. Boost to yarn exports may also help improving cotton prices in the country.However, as per the current scenario, we expect cotton to trade under pressure towards Rs 19,500 as farmers continue to hold on to their stocks in anticipation of better prices, which is leading to higher imports while demand is still wanting from the textile mills.

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