Cotton yesterday settled up by 0.2% at 19840 as the relentless monsoon rains, which have ravaged large parts of Vidarbha and Marathwada region of Maharashtra, has now started affecting the cotton crop. Local farmers and leaders of Shetkari Sangthana want early procurement of cotton by Cotton Corporation of India (CCI) and Maharashtra State Co-operative Cotton Growers’ Marketing Federation Ltd (Mahacot) as exposure to excess of rains and lack of labour force for plucking cotton is affecting the crop. They have also demanded that procurement norm of moisture content in cotton should be increased so that farmers could sell more cotton to the CCI and Mahacot. They are also facing massive labour problems in plucking cotton crop. Out of the total cotton production of Maharashtra, almost 15 per cent is from that district. Last year almost 55 lakh quintal (100kg) cotton was procured under MSP prices from the district. However, the moisture content is capped at 12 per cent by CCI and Mahacot. This cap should be increased to 18 per cent given the present circumstances. Framers are willing for lesser remuneration but at MSP rates. In the open market the farmers will get much less money for their cotton. Technically market is under fresh buying as market has witnessed gain in open interest by 13.01% to settled at 304 while prices up 40 rupees, now Cotton is getting support at 19740 and below same could see a test of 19630 levels, and resistance is now likely to be seen at 19920, a move above could see prices testing 19990.
Trading Idea for the day
Cotton trading range for the day is 19630-19990.
Cotton prices gained as relentless monsoon rains hit cotton crop in Maharashtra
Farmers want early procurement of cotton as exposure to excess of rains and lack of labour force for plucking cotton is affecting the crop.
However, the moisture content is capped at 12 per cent by CCI and Mahacot.
Cocudakl yesterday settled up by 0.05% at 1836 after rise in cotton prices as the incessant rains in the producing areas in Karnataka have affected the crops, while forecast of inclement weather still remains a concern. But traders are expecting an increase in arrivals in Madhya Pradesh in the coming days, as the weather is perfectly clear. IMD has forecast light to moderate rain in parts of the state in the next 24 hours in Maharashtra. Crop quality and production are also affected due to unseasonal rains. Given this, the grower is ready for harvesting. As this year, the farmers were expecting higher yield as there were no pink bollworm infestation. However, after 17th October, rains will be reducing and clear weather is expected in Southern regions of India with scattered rains only. According to Cotton Association of India (CAI), the cotton production in 2019-20 is expected to have reached 360 lakh bales up from 354.5 lakh bales as estimated earlier and declined imports by 50,000 bales to 15.5 lakh bales from the previous estimates. According to sources, the CAB estimates that during the current cotton season, there will be 360 million bales of white gold production. Whereas last year the production was 3.57 crore bales. This time around 4 to 4.25 crore bales of production are being speculated by private traders in the country. Technically market is under short covering as market has witnessed drop in open interest by -6.24% to settled at 21470 while prices up 1 rupees, now Cocudakl is getting support at 1822 and below same could see a test of 1807 levels, and resistance is now likely to be seen at 1850, a move above could see prices testing 1863.
Trading Idea for the day
Cocudakl trading range for the day is 1807-1863.
Cocudakl prices settled flat after rise in cotton prices as the incessant rains in the producing areas have affected the crops
Further forecast of inclement weather still remains a concern.
This year, the farmers were expecting higher yield as there were no pink bollworm infestation.
To Read Complete Report & Disclaimer Click Here
Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer