Cotton price for 29 mm S6 cotton in Gujarat is at Rs 42,200 per candy and has corrected by close to 10 per cent since its recent high at the end of April 2019. This has happened as the US cotton has corrected by more than 24 per cent during this period. The prices could make a feeble attempt to go up but are unlikely to sustain due to onslaught of record Q4 imports just ahead of a larger new season cotton crop. Expect prices to ease to Rs 41,500 or more per candy in the near term.
Soy bean prices at the benchmark Indore markets are trading at Rs 3,740 per quintal. During the coming days prices are expected to head towards Rs 3,700 and then Rs 3,680 per quintal. Huge stocks and favourable weather conditions across the major soy bean producing states to weigh on prices.
Prerana Desai, Research Head - Edelweiss Agri Services and Credit