Commodity picks: 10 August, 2020

The price of Shankar 6, the benchmark cotton, is around Rs 15,800 per bale. Soybean, at the benchmark Indore market, is trading at Rs 3,869 per quintal

Cotton

The price of Shankar 6, the benchmark cotton, is around Rs 15,800 per bale. Lack of cotton availability, along with opportunity to export, has seen large purchases at the CCI auction. The US cotton futures have rallied 18 per cent in three months. Expect the Shankar 6 price to gain to Rs  16,500 per bale in the near term.

Soybean

Soybean, at the benchmark Indore market, is trading at Rs 3,869 per quintal. The forecast of favourable weather at major producing states is increasing prospects for record crop in new season. But demand from processors is weak. Thus, the prices is expected to trade with a downward bias, towards Rs 3,800 per quintal.

Prerana Desai, Research head, Edelweiss Agri Services and Credit