Cotton Weaves Its Way To The Top
Meanwhile, concerns about increasing inflation hovering on the horizon and also the strengthening of the rupee led the gold prices to trade strong in the domestic market
During the recent fortnight, commodities traded mostly in the negative zone, except for cotton, gold and crude oil. The domestic cotton prices have moved up in tune with prospects of higher exports and declining supply in the physical market. This has provided a strong floor to the domestic cotton market. Besides, the Cotton Association of India (CAI) had updated the Indian cotton export estimates, keeping them higher for the 2020-21 season at 65 lakh bales, higher than 60 lakh bales projected till last month and 54 lakh bales projected a few months ago. Meanwhile, gold prices traded in green after US’ consumer prices gave a rise more than expected in April and acted as an inflation hedge for the metals.
Concerns about increasing inflation hovering on the horizon and also the strengthening of the rupee led the gold prices to trade strong in the domestic market. Oil prices traded steady on the back of Saudi Arabia’s commitment to fulfill India’s requirements of petroleum products in the wake of easing global output cuts. Zinc prices fell as the global zinc metal production for February 2021 has squeezed to 1,149.1 tons which is lower as compared to 1,181.2 tons in the previous month. Aluminium prices dipped due to rise in demand witnessed in consuming industries in the physical market. Copper prices declined on slicing of positions by speculators due to lowering of demand in the spot market.
"The domestic cotton prices have moved up in tune with prospects of higher exports and declining supply in the physical market. This has provided a strong floor to the domestic cotton market"
The data recorded during the fortnight on MCX states that commodities traded with mixed performances during the fortnight. Out of all the commodities, cotton stitched its position to the top by registering a gain of 6.82 per cent. MCX Gold reported a rise of 1.81 per cent during the fortnight and crude oil recorded gain of 1.04 per cent. Brent oil, MCX Zinc and MCX Aluminium shrink by mere 0.22 per cent, 0.36 per cent and 0.68 per cent, respectively. MCX Lead reported decline of 1.88 per cent and MCX Copper recorded decline of 1.89 per cent, respectively. Meanwhile, MCX Silver erased the gains of the previous fortnight with a dip of 1.94 per cent during the current fortnight.