MCX Oct Cotton continues to trade higher on Wednesday tracking firm trend in International prices. Recently, cotton prices were 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. As per latest data from Agricultural Ministry, the area under cotton was at 118.1 lakh ha, up 16.3% on year. ICE cotton jumped higher on Wednesday to their highest level in almost two weeks on worries over potential damage to crops in South Texas due to Tropical Depression Harvey.

Outlook

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

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