Commodity picks: September 17, 2018

Cotton

Current prices of cotton for the benchmark variety S6 (Gujarat) is at Rs  22,700 per bale. Cotton prices have stayed in a narrow range since last couple of months. ICE cotton futures in the US have come down from recent highs, the rupee is also reversing from all-time lows and the new crop harvest is round the corner, and as a result spot prices could come under pressure. But downside remains limited due to high support price and the ongoing trade war between US and China. Expect cotton prices to slide towards Rs 22,300 per bale in the next couple of weeks.

Sugar 

Sugar prices at the benchmark Kolhapur market are trading at Rs  3,056 per quintal. For the week ahead, sugar prices are expected to decline by Rs  30-50 per quintal and head towards Rs  3,000 per quintal. Persistent supply glut, higher sugar release quota for September and approaching crushing season is likely to keep sugar prices under pressure.