Kapas futures traded on a slightly positive note during yesterday’s session short covering. The most Active April NCDEX Kapas futures traded in a range of 632.5 to 637.7 levels and ended the session at 636.6 levels with a slightly positive change of 0.13 per cent

Outlook:

Kapas futures are expected to trade on a positive note during the day on account of good demand from millers and exporters

At present the mill demand is good and it is likely to double in April, millers who are not willing to enter into new deals due to financial year ending May likely start buying in April month

According to traders, the supplies will be tight in may-June, which also an another factor for supporting prices

Currently Pakistan and Bangladesh are importing cotton from India, while demand from china is also picking up as the Indian prices are still lower than in china

If the export demand remains firm, traders are expecting the prices to touch 30,000 per candy in April

According to Cotton association of India, cotton exports may exceed forecast as the overseas sales this season may total 6.8 million bales compared to 6.5 million bales estimated previously

Also the cotton association of India has upped its production estimates to 30.1 million bales from previous estimates

Courtesy: Kedia Commodities

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