Stock Market Latest News -
Prices of cotton will remain flat as the government of India pegged up the cotton output estimation for 2016-17 despite the lower acreages
Cotton output in India estimated to be at 34.1 million bales which is higher by 1% as compared to 33.8 million bales produced during 2015-16 while the total consumption was estimated at 29.5 million bales, Cotton Association of India (CCI) reported.
There are reports of shrinking domestic demand of fibres as spinners in southern region preferred imported cotton due to lack of quality crop at local market.
In the current year, India may import around 2-2.5 million bales of fibre, which could lower the prices in the coming week.
Moreover, farmers are intended to increase cotton acreages by 20-25% in northern part of India which may restrict the major gains in prices in near term.
Apart from domestic market, the global market cues may also keep the prices flat. United States Department of Agriculture (USDA) in its latest report hiked global opening stocks on higher output in Australia while world ending stocks are projected at 90.5 million bales nearly 600,000 bales above last month.
Global output has also risen slightly this month due to oversupply in US and However, sharp fall in the prices will be cushioned by hope of higher demand from China.
Technically MCX April Cotton may trade in sideways movement and we expect 21810 will act as upside resistance on downside 21000 will provide immediate support for week
BULLS vs. BEARS -
Estimation of higher crops-Bear
Rise in demand at lower level -Bull
Imposed stock limits-Bear
Fall in area under cultivation-Bull
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