Kolkata: A sudden surge in the cotton futures price in the country caught market participants by surprise due to overwhelmingly bearish fundamentals. "Cotton futures on Multi Commodity Exchange (MCX) surged recently, tracking firm International prices which climb to highest in three years amid buoyant demand for U.S. exports and tight local supplies of cotton. This season country witnessed slower domestic arrivals due to demonetization during peak arrival months. This increase is expected as farmers have been encouraged by better returns due to high cotton prices and improved yields last year. As per trade sources, cotton area expected to increase in Punjab as farmers may switch from rice to cotton because of higher returns.

Source: Economic Times May 17, 2017 14:03 UTC