Gains in Kapas futures may remain capped owing to estimates of higher production & ongoing arrivals. USDA said in its report that India’s production will be around 27.5 million bales (480 pound bales) in October compared to 27 million bales a month ago.
Ending stocks could rise from 7.75 million bales estimate in September to 8.45 million bales in October. Meanwhile, exports could decline from 5.5 million bales estimate in September to 5.25 million bales in October.
Chana futures may trade bearish owing to selling pressure on the national bourse & investors avoiding taking long position due to the continuing special margin. Spot chana slipped to Rs 3,300-3,325 a quintal. Sugar futures may trade sideways facing resistance at 2790 levels. Profit booking may keep the upside capped.
Courtesy: SMC Global
