U.S Agriculture Dept. reduces surplus on estimates, MCX Cotton may turn green
The U.S. government on Friday last week cut its forecast of global cotton inventory for the marketing year end-July due to expectations of higher demand as China, home to the world's No. 1 textile industry, continues to bulk up its strategic stockpile of fiber.
In a monthly crop report, the U.S. Department of Agriculture reduced its estimate for surplus to 81.74 mn bales, down 120,000 bales from last month's forecast.
Kapas futures are expected to trade on a positive note on account of declining supplies in the domestic markets and expected higher exports in the coming months. However, any decision taken by the industry association to augment supplies may act as a deterrent to an upside in the Cotton prices.
Strategy
-BUY ON DIPS SUPP ARD 880 AND HURLDE ARD 1022
The U.S. government on Friday last week cut its forecast of global cotton inventory for the marketing year end-July due to expectations of higher demand as China, home to the world's No. 1 textile industry, continues to bulk up its strategic stockpile of fiber.
In a monthly crop report, the U.S. Department of Agriculture reduced its estimate for surplus to 81.74 mn bales, down 120,000 bales from last month's forecast.
Kapas futures are expected to trade on a positive note on account of declining supplies in the domestic markets and expected higher exports in the coming months. However, any decision taken by the industry association to augment supplies may act as a deterrent to an upside in the Cotton prices.
Strategy
-BUY ON DIPS SUPP ARD 880 AND HURLDE ARD 1022
