Also though the overall physical market sentiment for cotton remained weak, MCX future for current month tried to support the physical market price. However, the physical market did not follow MCX with 1:1, so MCX & physical price spread widened. In market, traders raised a question on MCX spot prices as well, asking to justify, the spot pries taken by MCX trade. These prices are much higher than the spot price given by local regional bodies, which was main cause to take MCX upside without aggressive demand in physical market. Weak rupee too played an important role to support flat cotton prices in India otherwise prices could get lower from here. ICE is trading in narrow range from last two weeks, which has potential to go further lower after announcement of duties on each other in US-China trade war.
Due to satisfying monsoons, Indians expect a bumper cotton crop with better yield this year. Recently Indian monsoon covered well all across cotton growing regions in India, this rainfall was most required for standing crop which gave a boost to the crop, as of now crop condition is reported very good, except few small regions affected with diseases in Maharashtra.
As cotton arrivals are shortly expected from northern India, mills have enough stock for coming days and are not in hurry to buy immediate cotton from the current crop.
