India’s top rating agency CARE Ratings expects cotton output in the MY 2020-21 (October-September) to increase by 4 per cent to 38 million bales. As per Money Control, the country’s cotton exports are likely to rise 20 per cent to 1.02 million tons due to competitive pricing in the global markets and an improvement in international cotton consumption. Its cotton surplus will decline on account of higher exports along with a recovery in domestic cotton demand.
Sunand Subramaniam, Senior Research Associate, Choice Broking says, the firm expects MCX Cotton futures to trade bearish as cotton farmers from various states are planning to increase the area under cultivation in the coming 2021-22 Kharif season. Cotton exporters are going strong as Indian yarn prices are attractive. However, arrivals are delayed due to COVID cases and lockdown in many parts of the country, he adds.
In the futures market, cotton for May delivery touched an intraday high of Rs 22,130 and an intraday low of Rs 21,840 per bale on the MCX. So far in the current series, the commodity has touched a low of Rs 20,680 and a high of Rs 22,950.
The value of May and June’s contracts traded so far is Rs 30.77 crore and Rs 11.52 crore respectively.
