Cotton price firm up with closing stock projects at 6-year low
With closing stocks of Cotton anticipated to be at a six-year low for the current season, ending September, prices of the fiber crop have started firming up as the new crop harvest entries are expected from mid-October onwards, which is as yet three-four months away.
According to the Cotton Association of India (CAI), Cotton carry-over stock from the 2017-18 season is estimated to be 16 lakh bales (each of 170 kg), which is said to be the lowest since 2011-12.
New crop arrival will take place by mid-October due to delayed rains in Cotton growing regions. Cotton sowing is likely to take place by Mid-July. The Cotton crop cycle requires at least 120 days for first picking.
In the balance sheet for the 2017-18 Cotton season, CAI has estimated total cotton supply the till September 30 at 410 lakh bales. This includes the opening stock of 30 lakh bales in October 2017. Domestic consumption has been higher, at 324 lakh bales, while exports, at 70 lakh bales, are higher than earlier estimates of 50-55 lakh bales.
Financial Advisory which means a lot to a Financial trader and we can do a best with your investments with all mandatory work skills subscribe us now and get two days Free Trial >> Bonaz Capital