Product choice: August 10, 2020
The price of Shankar 6, the benchmark cotton, is around Rs 15,800 per bale. The lack of availability of cotton, as well as the possibility of exporting, resulted in large purchases at the ICC auctions. US cotton futures rose 18 percent in three months. Expect the price of Shankar 6 to rise to Rs 16,500 per bullet in the short term.
Soybeans, on the Indore benchmark market, are trading at Rs 3,869 per quintal. The forecast of favorable weather conditions in the major producing states increases the prospects for a record harvest for the new season. But demand from processors is low. Thus, prices should trade with a downward bias, towards Rs 3,800 per quintal.
Prerana Desai, Research Manager, Edelweiss Agri Services and Credit