Kapas trades up on export demand

Kapas and cocud futures traded positive on Saturday on hopes of the higher exports in the current year.
The news about the govt. mulling on reopening the ceiling on cotton exports from 55 lakh bales as the production in the current year is higher supported the prices.
Outlook:
Kapas and cocud futures are expected trade positive for the day. The increase in the prices and volume when the open interest is decreasing indicates that the prices might remain volatile.
The CAB has decided to postpone the decision on revising the export ceiling to February 10th despite higher production this year.
According to trade sources, the ending stock of cotton is expected to drop to 35 lakh bales in the current crop season compared to 50 lakh bales of normal stocks. The ceiling on cotton exports is likely to remain at 55 lakh bales as per the cotton advisory board.
The CAB had projected the total 2010-11 crop in August at 325 lakh bales (one bale equals 170 kg) which was revised to 329 lakh bales.
According to the Cotton Corporation of India, as on January 16, 162.65 lakh bales of cotton had arrived in the domestic market in the current season (October-September), which was more than the 152 lakh bales in the same period of 2009-10.

(Source: http://www.commodityonline.com/futures-trading/technical/Kapas-trades-up-on-export-demand-21453.html)