Demand prospects for cotton improving

New Delhi, Nov 12 : As unlocking activity continues, demand prospects of Indian cotton continue improving — be it local demand or overseas demand, according to a report by Religare Broking.
In October month, traders had exported seven lakh bales and contracts for another one million bales have been signed for November shipment, as per cotton dealers.
Exporters also say that India’s cotton exports could jump 40 per cent in 2020/21 from a year ago to seven million bales, the highest in seven years, as depreciation of the rupee and a rally in global prices allow exporters to obtain the export contracts.
Indian cotton is being offered at around 74 cents per lb, cost and freight-basis, to buyers in China, Bangladesh and Vietnam for November shipment, which is cheaper then 77 cents offered by competitors like Brazil and the US. Cheapest export offers makes overseas sales viable from India — a key bullish driver.
The report said enhanced global/domestic demand for mask and surgical gown production along with increasing procurement activity shall be supportive for prices.
Palm oil markets remain strong as well due to persistent buying interest in Malaysian and Indonesian markets where production outlook continues declining against improving export prospects especially from India, Religare Broking said.