Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us    
Google
Web www.equitybulls.com
Union Budget
Budget 2011-2012 Home
Industry Expectations - Budget 2011-2012
Industry Reactions - Budget 2011-2012
Budget 2010-2011
Budget 2010-2011 Home
Industry Expectations - Budget 2010-2011
Industry Reactions - Budget 2010-2011
Contributor's Corner
Bonanza Portfolio
Hemant K Gupta
Krish Bhatt
S A A R T H I
Trinity Investments
Exchange Information
BSE 2009 Holidays
NSE 2009 Holidays
Investor Guide
Depository & Dematerialisation
Grievance Redressal
Investor Guide
SEBI
Trading of Securities
Transfer of Securities
Your Rights
Budget 2009-2010
Budget 2009-2010 Home
Industry Expectations - Budget 2009-2010
Industry Reactions - Budget 2009-2010
Interim Budget 2009-2010 Home
Industry Expectations - Interim Budget 2009
Budget 2008-2009
Railway Budget 2008-2009
Industry Expectations - Budget 2008
Union Budget 2008-2009
Highlights of Budget 2008-2009
Summary of Budget 2008-2009
Industry Reactions - Budget 2008
IPOs
Current IPOs
Past IPOs
IPO Subscription
Mutual Funds
Gold Exchange Traded Fund
MF Unique Holding
Forthcoming Dividends
ELSS Schemes Comparison
Tax Plans
New Fund Offers
Research
Arbitrages
Equity
Market Whispers
Tax Planning
Home
Equity Linked Savings Scheme
Post Office MIS
9% GOI Senior Citizens Savings Scheme
8% Savings (Taxable) Bonds
Kisan Vikas Patra
National Savings Certificate
Public Provident Fund
Commodities

| More

Cotton looks bearish on higher stocks, good acreage forecast; weather will be the key: Angel Broking

Posted On: 2017-04-12 21:50:49

Views of Mr. Ritesh Kumar Sahu (Fundamental Analyst - Agri Commodities, Angel Commodities Broking):

"Cotton prices have been under pressure since second half of March. The pressure in cotton prices built after the reports of higher arrivals and sufficient stocks position in the country following a good production outlook in current as well as coming season and much improved import data coupled with lower than anticipated exports potential from the country during the present cotton year, which started in October 2016.

The rally on cotton price since the start of the current calendar year halted at around ?21,740 per bale in the third week of March. After consolidating at this level for some time, prices have started to decline since March. Weak demand from cattle feed traders, coupled with an increase in the supply, pushed the price lower.

On the Multi Commodity (MCX), the cotton April delivery contract has tumbled 5 per cent from its March high of ?21,740 to the current levels of ?20,690. The most active April delivery contract has been trading below its 20-day moving average of ?21,191. This level may act as a good resistance and restrict the upside in the contract in the near to medium term.

The monthly data released by the U.S. Department of Agriculture (USDA) showed estimated India stocks ending 2016/17 at 2.72 lakh tonnes (160 lakh bales of 170 kg each) as against an outlook of 2.59 lakh tonnes (52.4 lakh bales) in its report last month. The USDA raised imports projection by 129,412 bales to 29.47 lakh bales, which is 4.6% higher on month and 115% higher compared to than the last year imports. On the other hand, the exports from the country are revised downwards by 11.12% on month to 51.2 lakh bales (170 kg each). Last year. India exported about 73.8 lakh bales.

According to USDA forecast the production in India is pegged at 345 lakh bales, thus the available stocks for the current season is above 500 lakh bales after adding carryover stocks and imports. The domestic use and exports during the current cotton season will be about 355 lakh bales.

As per the latest press release by Cotton Association of India (CAI), cotton crop estimate for the ongoing cotton season at 340.50 lakh bales of 170 kgs each and with carryover stocks of 70 lakh bales the total availability will be around 410.50 bales. The domestic consumption is estimated at 300 lakh bales which leaves available surplus at 110.5 lakh bales. The exports and import estimates not given by CAI.

CAI further added that "the arrivals of cotton have accelerated their pace during the month of March 2017. The arrivals during March 2017 are higher than that of the corresponding month during last year and the gap of arrivals as compared to last year has narrowed down further.

The other factors which will impact on the cotton prices in coming months is the monsoon forecast in the sub-continent and weather during the US planting season. The USDA's crop planting forecast for 2017, released March 31, projects a 21% jump in U.S. cotton acreage to about 12.2 million acres.

Similarly, as per the International Cotton Advisory Council (ICAC), India's production is projected to grow by 2% to 5.9 million tons (347 lakh bales of 170 each) while production in China could reach 4.8 million tons in 2017/18 due to expected increase in area in both countries. Moreover, World cotton production is forecast to grow by 1% to 23.1 million tons in 2017/18 as high prices in 2016/17 encourage farmers to plant cotton.

In India, the minimum support price (MSP) recommendation for cotton in 2017/18 by Commission for Agricultural Costs and Prices (CACP) has been increase to Rs. 4,020 per quintal, an increase of Rs, 160 or 4%. Higher MSP proposal may attract farmers to plant more cotton this season compared to last year."


Source: Equity Bulls

Click here to send ur comments or to feedback@equitybulls.com





Other Headlines:

Sluggish Chinese economy hits base metals: Angel Commodities Broking
Will the rally continue for oil prices? Angel Commodities Broking
Battery demand prospects fuel Nickel to two-year high: Angel Commodities Broking
Castor seed heading for first monthly loss in 5 months in October: Angel Commodities Broking
Mustard prices likely to trade higher in coming month on improved demand: Angel Commodities Broking
Aluminium rules the commodity charts: Angel Commodities Broking
Zinc shines bright thanks to supply woes, China's RRR cut: Angel Commodities Broking
Weekly Agri-Commodities Update | Angel Commodities Broking
Double whammy of North Korea, S&P downgrade hits metals: Angel Commodities Broking
Early Chinese output cuts boost metals: Angel Commodities Broking
Weekly Agri-Commodities - Update - Angel Commodities Broking
Profit booking, weak Chinese data bother base metals: Angel Commodities Broking
Safe haven play back in gold: Angel Commodities Broking
Weekly Agri-Commodities Update - Angel Commodities Broking
Steel rally, Chinese demand prospects - win-win for base metals: Angel Commodities Broking
Turmeric surge on diminishing arrivals and improving demand: Angel Commodities Broking
Weekly Agri-Commodities Update - Ritesh Kumar Sahu - Angel Commodities Broking
Bull run in metals far from over: Angel Commodities Broking
Safe haven play back in precious metals, Oil falls on over supplied markets: Angel Commodities Broking
Weekly Agri Commodities Update: Angel Commodities Broking
Castor Prices surge on higher exports, crop damage: Angel Commodities Broking
Steel rally pushes base metals to new highs: Angel Commodities Broking
Oil loses its shine this week, Non farm payrolls the focus tonight: Angel Commodities Broking
Weekly Agri - Commodities Update: Angel Commodities Broking
Guar prices surge on good exports and heavy rains: Angel Commodities Broking
Nickel jumps to highest since April'17: Angel Commodities Broking
Fearing record imports, Pepper hit lower circuit on MCX and NCDEX on debut: Angel Commodities Broking
DX nosedive to 11-month lows; base metals rejoice: Angel Commodities Broking
Weekly Agri-Commodities Update: Angel Commodities Broking
Crude oil outshines the commodities space - gains solid 5 percent this week: Angel Commodities Broking
Turmeric prices surged to 11 month high: Angel Commodities Broking
Commodities loses its charm in the recent weeks: Angel Commodities Broking
Crude oil in a state of supply overhang: Angel Commodities Broking
Chinese economic recovery supports metals in June'17: Angel Commodities Broking
Rising ore supplies dim Nickel prospects: Angel Commodities Broking
Supply glut woes jump; oil markets slump: Angel Commodities Broking
Guar prices declines on good rain forecast and weak crude oil prices: Angel Commodities Broking
Commodities Perspective - Normalization of its balance sheet, the new agenda for US FED: Angel Commodities Broking
Cotton trade in a range in 2017, may drop on higher production and lesser exports forecast: Angel Commodities Broking
Currency Perspective - RBI cuts inflation projections on the back of robust monsoon season: Angel Commodities Broking
Chinese economic woes hurt metals in May'17: Angel Commodities Broking
GST for precious metals and diamonds finally fixed at 3%: Angel Commodities Broking
Double whammy of Steel and crude oil hits Nickel: Angel Commodities Broking
Cardamom surge 10.8% in a week on heavy rains in Kerala: Angel Commodities Broking
Oil prices - a game of inventories: Angel Commodities Broking
OPEC output cuts falls short of expectations: Angel Commodities Broking
Turmeric prices rise on short covering and lower level buying: Angel Commodities Broking
Weak Copper Demand from China, A Positive Outlook for India - Mr. Alireza Moghaddam, Chairman, AMIDT Group
Base metals bear the brunt of macro economic woes: Angel Broking
NCDEX coriander sinks to 15 months low on higher supplies: Angel Broking


Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2017