MCX Oct Cotton closed lower for the second consecutive day on Monday pressured by expectation of good production due to higher acreage. However, erratic monsoon in the country coupled attack of pest has put some concern over the yield prospects of cotton this year but higher carryover stocks and anticipation of much improved imports in coming season is pressurizing the prices. As per latest data from Agricultural Ministry, the area under cotton was at 118.1 lakh ha, up 16.3% on year.

Outlook

Cotton futures are expected trade sideways to lower on expectation of further corrections due to expectation of good production and carryover stocks in the next season. However, improving cotton prices in International markets may keep the prices sideways. Moreover, crop damage from heavy rains in cotton growing areas of Gujarat coupled with pest attack doubts market participants of bearish outlook.

Get More Indian Stock Market Tips >> Click Here>> http://www.ripplesadvisory.com/services.php.