Cotton prices increased by 8% in August

Cotton prices increased by 8% in August: Less likely to fall in cotton prices, know the reason behind it

Cotton prices increased by 8% in August

In the short term, the price of cotton in the domestic spot market is Rs 45,455. 47,500 to Rs. will do business within the However, with harvesting, the price may come down gradually to below Rs 40,000. Going below that, the prices may reach around Rs 35,000 per bale.
According to Tarun Satsangi, Assistant General Manager (Commodity Research), Origo E Mandi, there have been reports of crop failure due to heavy rains and insects in cotton-growing areas of the country along with the strengthening of ICE cotton. Due to this, the price of cotton in the Indian spot market was seen firming above Rs 46,000 per bale.
In August so far, cotton prices have risen by about 8%. Incessant rains have had a negative impact on the cotton crop and cotton prices seem to have ignored the expected high crop figures in the country this year.
ICE Cotton December futures have gained 21% in the past fortnight and touched an 8-week high of 119.59 cents a pound, from last week's weekly close of 116.01 cents a pound. Tarun Satsangi says that due to the possibility of a sharp fall in the cotton crop and ending stock in the US, the prices have seen strength.
According to Tarun Satsangi, due to weak cotton crops in the US as well as uncertainty about the Indian crop data, there will be a lot of volatility in cotton prices in the short term. A lot will become clear in the domestic market by the end of this month or within the first 15 days of next month.
But due to the weak cotton crop in the US at a historical level, it will definitely have a negative impact on the global market. According to the latest data, till last week, cotton has been sown in 123.10 lakh hectares across the country, which is 6% more than 116.2 lakh hectares in the same period last year.

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