Cotton Prices Dropped amid expectation of higher arrivals and sluggish demand.
Largest contribution in arrivals was made by Maharashtra followed by Gujarat and Telangana which contributed around 4.449 million Bales, 3.46 million bales 3.037 million bales respectively. India’s cotton arrivals during current year 2017-18 (September-October) recorded a growth of 18% and reached to 16.5 million bales until January 25 due to increased output, said sources at Cotton Corporation of India (CCI).
Jeera production may be higher in coming season on reports of higher acreage of cumin in Gujarat during current season. In Gujarat, Jeera acreage is up by 38% to 3.83 lakh hectares as on 15-Jan-18. Last year, it was 2.88 lakh ha at that same time. As per government data, Jeera exports during first 7 month of FY 2017/18 (Apr-Oct) is 88,229 tonnes, up 11% compared to last year exports volume for the same period
As the price is far lower than what they expected, some farmers who can afford the transport charges are going to Sangli market in Maharashtra where it is over Rs. 9,000. Though the crop is traded through e-NAM (electronic national agriculture market) to avoid the intervention of middlemen, farmers and their associations allege that price is being rigged in favour of them by forming a cartel.
Last week, the U.S. Federal Reserve kept interest rates unchanged but said inflation likely would rise this year and hinted at “further gradual” rate increases. A late rally in physical gold buying failed to prevent a drop in full-year demand last year to its lowest since 2009, the World Gold Council said, as weaker fund investment outstripped a bump in jewellery consumption.
The trade deficit — which measures the gap between what the United States imports and what it exports — widened to $53.1 billion in December, up $2.7 billion from November. Dovish commentary from St. Louis Federal Reserve president James Bullard, meanwhile, did little to stem losses in the prices. Bullard said that he favours low rates for an extended period, and warned that nominal wages were not a good predictor of inflation.
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