After reaching the bottom, now the price of cotton is expected to improve.

13-Aug-2024 09:09 PM

Mumbai. A leading trade analyst says that since the end of February, the price of cotton has fallen by about 35 percent and now after reaching the bottom, the market is on the verge of rising.

At the national level, there has been a significant reduction in the sowing area of ​​cotton and there is a strong possibility of a decrease in production.

This can also have a psychological effect on the market to some extent. According to the analyst, there has been tremendous pressure on the prices of cotton till now because on one hand its buying and selling has become more than necessary and secondly, buyers have tried to buy it at the lowest price.

At present, the futures of cotton are running around the important resistance level in the commodity exchange and if the price succeeds in rising above that level, then a new phase of rise and strength will begin in it.

With this, the trend of softness in the market for the last several months will stop. For the last several weeks, the price of cotton has been running at a very low level, whereas in the future it should rise and come to normal levels. There has been a trend that after falling, the cotton market recovers again.

According to official data, the cotton production area at the national level could reach only 110.50 lakh hectares till August 12 in the current Kharif season, which is 10.75 lakh hectares less than the sowing area of ​​121.25 lakh hectares in the same period last year.

Earlier in the same period, the area of ​​cotton was recorded at 124.27 lakh hectares in the year 2022 and 116.50 lakh hectares in the year 2021.

This time the area of ​​cotton has decreased significantly in Punjab, Haryana and Rajasthan as well as Gujarat, although it is its most prominent producing state.