The world is about to be inundated with cotton as farmers take advantage of high prices to produce more and China floods the market with excess supply from its strategic inventory.
Global output will climb 6.9% in the season starting 1 August, helping push stockpiles outside China to a record, the US department of agriculture estimates.
American farmers, the biggest exporters, are forecast to have their biggest harvest in a decade, and crop increases are expected in Australia and top grower India.
Growers planted more acres after cotton futures jumped 12% last year, when most other crops were mired in slumps. At the same, there are no signs that China’s sales of its state inventories are slowing down. The ample supply outlook means prices are now heading for the biggest monthly loss since August. bloomberg
India receives 13.6% from Asia ex-Japan funds in April
Allocation to India by Asia ex-Japan funds remained around 13.6% in April, according to Kotak Institutional Equities’ latest foreign fund-flow tracker.
Fund allocation to India by global emerging market (GEM) funds fell marginally to 11.1% from 11.2% in March.
“Allocation by Asia ex-Japan ETF funds to India were at 9.4% in April compared to 9.6% in March," said Kotak, adding that allocation to India by GEM ETF funds increased to 10% from 9.9% in March.
Allocations to India and China constitute more than one-third of the average Asia ex-Japan fund portfolio.
Interest coverage of road EPC firms to rise in FY18
Engineering, procurement and construction (EPC) firms in the road sector have seen a gradual improvement in their key credit metrics.
As per a report by rating agency Crisil Ltd, interest coverage of firms in this segment rated by it stood at four times in fiscal year 2017.
It is likely to rise to five times in this fiscal year.
This ratio helps to determine how easily a firm can pay interest expenses on outstanding debt.
Despite scaling up in business, road EPC firms managed to reduce their dependence on external borrowings courtesy efficient working capital management, lower capital expenditure and policy support for build-operate-transfer projects.
This resulted in better interest coverage.
Crisil expects improvement in their credit profiles to sustain over the medium term, given strong and diversified order books and proven execution capabilities, it said.