Kapas futures may trade sideways owing to mixed sentiments shown by the USDA report.
Firstly, The US Department of Agriculture (USDA) revised global Cotton ending stocks for 2011-12 upward at 60.77 million bales in its February report from 58.35 million bales estimated in January on higher beginning stocks and production.
On the other hand, USDA revised production import estimate of China by one million bales and exports of India by 250,000 bales.
Sugar futures may trade sideways. Rupee taking support above 49 levels, may some positive sentiments to the counter & improve the export situation.
UP millers have crushed 469.68 lac ton sugarcane and produce 40.8 lac ton Sugar with an average recovery of 8.69% till 7th Feb 2012.
Recent sugar production data from UP is 16% higher compared to last year sugar produced same period.
Courtesy: SMC Global
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