This year, India's cotton consumption is estimated higher at 270 lakh bales on higher mill consumption.
India cotton is expected to trade sideways with a positive bias on account of lower arrivals in the domestic markets. Downside is expected to be limited in the markets as farmers may not sell their stocks at very low prices. Also demand remains strong at such low price levels according to a report from Angel Commodities.
“The trend is bullish, support is expected at Rs.16450 and Rs.17050 is the resistance. Profit booking is expected as of now,” said Milan Shah, Agri Researcher at Commodity Online reacting to the cotton trend.
Cotton futures on India's Multi Commodity Exchange was down by 0.18 percent for January contract at Rs. 16850 per bale as of 12.07 IST on December 19.
This year, India's cotton consumption is estimated higher at 270 lakh bales on higher mill consumption.
Poor cotton output in major cotton growing areas of India and Pakistan may help cotton prices to go up if cotton production remains lower in the near future.
Gujarat, Maharashtra and Madhya Paradesh states in India are witnessing 30 percent shortfall in cotton production this year.
According to data from Pakistan Cotton Ginning Association (PCGA), the total domestic arrival of seed cotton (phutti) till December 15, 2012 was 10,768,861 bales against 267,157 bales of last year.
Brazil’s 2012-13 cotton production is forecast at 6.3 mn bales, down 27 percent from 2011-12 production
India cotton is expected to trade sideways with a positive bias on account of lower arrivals in the domestic markets. Downside is expected to be limited in the markets as farmers may not sell their stocks at very low prices. Also demand remains strong at such low price levels according to a report from Angel Commodities.
“The trend is bullish, support is expected at Rs.16450 and Rs.17050 is the resistance. Profit booking is expected as of now,” said Milan Shah, Agri Researcher at Commodity Online reacting to the cotton trend.
Cotton futures on India's Multi Commodity Exchange was down by 0.18 percent for January contract at Rs. 16850 per bale as of 12.07 IST on December 19.
This year, India's cotton consumption is estimated higher at 270 lakh bales on higher mill consumption.
Poor cotton output in major cotton growing areas of India and Pakistan may help cotton prices to go up if cotton production remains lower in the near future.
Gujarat, Maharashtra and Madhya Paradesh states in India are witnessing 30 percent shortfall in cotton production this year.
According to data from Pakistan Cotton Ginning Association (PCGA), the total domestic arrival of seed cotton (phutti) till December 15, 2012 was 10,768,861 bales against 267,157 bales of last year.
Brazil’s 2012-13 cotton production is forecast at 6.3 mn bales, down 27 percent from 2011-12 production
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