According to Angel Commodities, MCX Oct Cotton closed little higher on Thursday due to reports of irregular rains in cotton growing states in the country which may affect yields.
Angel Commodities' report on Cotton
MCX Oct Cotton closed little higher on Thursday due to reports of irregular rains in cotton growing states in the country which may affect yields. Gujarat may witness a decline in yield following deficient and delayed rains in Maharashtra attack of pest this year may limit the yields of cotton. Cotton growers in Saurashtra and North Gujarat — two key cotton growing regions in the State — have raised an alarm with most of the districts facing deficient rains in the range of 6 2 - 88% of the normal rainfall. The trend is still positive on reports of lower sowing this season compared to last season. Cotton acreage till last week was down by 4 % on year to 109.8 lakh hac compared to 114. 3 lakh ha last year, according to the farm ministry data. As per Commerce ministry data, cotton exports in May surged by 27.6% to 5.7 lakh bales as compared to last year.
Outlook
Cotton futures are expected to trade sideways to higher on reports of erratic rains in Gujarat and Maharashtra. Moreover, reports of pest attack and increase in MSP by government may keep supporting the prices.
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