Sumary of Cotton price slips for second day on weak global cues; expert says outlook bullish:
- The soft commodity has been trading higher than 20, 50, 100 and 200- days moving averages but lower than the 5-day moving averages on the daily chart..
- Cotton prices declined for the second straight day after hitting a fresh lifetime high on June 11 on profit-booking by market participants..
- On the MCX, Cotton futures for June delivery dropped by Rs 250, or 1.03 percent, to Rs 23,970 a bale at 18:20 hours on a business turnover of 4,510 lots..
- Mohit Vyas, Analyst at Kotak Securities said, “Despite a recovery in ICE Cotton futures, some profit booking was seen in domestic cotton, which has scaled to an all-time high level of Rs 24,570 level this week..
- Factors like a lower supply of cotton in mandis, rising demand by millers from various states and attractive export outlook have elated cotton to an unforeseen level this week.”.
- “We expect MCX Cotton futures to trade bullish as the global cotton production and stocks have shown decline on a monthly basis, based on recent USDA report….