Cotton Association of India (CAI) has revised Indian Cotton export estimates for the 2020-21 season at 65 lakh bales against 60 lakh bales projected till last month and 54 lakh bales projected a few months ago. Cotton futures traded firm at Rs 22,300 per bale on May 24. Futures delivery for May on the MCX index increased by 0.86 per cent to Rs 22,290 per bale while it increased by 0.85 per cent to Rs 190 in June. The value of May and June’s contracts traded so far is Rs 75.87 crore and Rs 81.44 crore, respectively.
According to Mohit Vyas, Analyst, Kotak Securities, higher stock revision by CAI, hit on-demand amid COVID blues and recent sell-off in ICE Cotton futures are likely to keep domestic cotton prices range-bound with negative bias in coming sessions. The forecast of the timely onset of monsoon in the country by IMD and Skymet this season is also likely to weigh on natural fiber prices in coming sessions.
