Lower cotton shipments from India will allow rivals such as United States, Brazil and Australia to increase cargoes to key Asian buyers such as China and Pakistan, reports said. India is expected to produce more cotton than what is estimated by the Cotton Advisory Board (CAB).
Technically MCX Cotton is getting support key @ 20,980 Level and below same could see a test of 20,160 level, And resistance key is now likely to be seen at 23,030 a move above could see prices testing 23,870.
The country is expected to produce 36.1 million bales of cotton this year compared to 37 million bales in 2017-18 crop year, according to the state-run Cotton Advisory Board.Rains in Gujarat and Maharashtra, which account for more than half of India’s cotton production, were nearly a quarter below normal during the June-September monsoon season, reports said.
Meanwhile, cotton arrivals all over India were lower at about 133,000 bales compared to 154,000 bales on the previous day. The Indian Cotton Federation (ICF) has estimated cotton crop for 2018-19 in the country to be 373 lakh bales of 170 kg a bale.
However, CAI has revised downward the cotton production estimate for the country by 4.75 lakh bales, pegging it at 343.25 lakh bales of 170 kg for the current season 2018-19. Government has taken a new decision to maintain transparency in cotton procurement. The Central Government has made Indian Cotton Corporation Limited a nodal agency for the purchase of cotton.
