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Nov 17, 2017 11:59 AM IST | Source: Moneycontrol.com

Cotton prices to trade sideways to higher: Angel Commodities

According to Angel Commodities, cotton futures are expected trade sideways to higher as CCI has already start its procurement in main cotton growing states.

Moneycontrol News @CommodityTrialcom

Angel Commodities' report on Cotton


MCX Cotton Nov futures  is trading in a range on mixed  fundamentals of higher arrivals  and  reports of damage to cotton  crops in Vidarbha and start of procurement by CCI in Gujarat at  higher prices. Moreover, govt. imposed 5% GST under reverse charge mechanism (RCM).  The notification says that the GST on supply of raw cotton by farmers will be liable to be paid by the buyers – traders & ginners under the RCM,  which makes cotton  procurement expensive for them.

Outlook
Cotton futures are expected trade sideways to higher as CCI has already start its procurement in main cotton growing states. They have a target to procure 100 lakh bales this season. Good demand for kapas may also support cotton prices. However, due to implementation of GST for raw cotton, traders and ginners may go on strike which may put pressure in cotton prices.

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Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on CommodityTrial.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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