Cotton yesterday settled down by -1.56% at 21440 on profit booking after USDA weekly export sales report showed net sales of 122,300 Running Bales for 2020/2021, down 55% from the previous week. The U.S. Agriculture Department's weekly crop progress report showed 8% of the total 2021 cotton crop was planted in the week ending April 11, slightly above the five-year average of 7%. The cotton area harvested and the cotton production in India have shown a significant rise in the MY (market year) 2019/20 as compared to the area harvested in MY 2018/19. The cotton area harvested, and the cotton production has increased by 5.56 per cent and 14.34 per cent to 13.30 million hectares and 29.50 million 480-lb bales respectively in MY 2019/20 over MY 2018/19. It is expected to increase in the upcoming MY 2020/21 with higher demand for cotton yarn and fabric for exports. It also triggered cotton fibre and yarn prices in the beginning of the year 2021. The purchase of cotton by the government of India under the MSP programme has been done in various states which has secured approximately more than 24.00 per cent of total production. The area harvested and production is expected to move up to 13.40 million hectares and 29.50 million 480-lb bales in the MY 2020/21. In spot market, Cotton dropped by - 40 Rupees to end at 22010 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -5.15% to settled at 5761 while prices down -340 rupees, now Cotton is getting support at 21240 and below same could see a test of 21050 levels, and resistance is now likely to be seen at 21760, a move above could see prices testing 22090.
Trading Idea for the day
Cotton trading range for the day is 21050-22090.
Cotton dropped on profit booking after USDA weekly export sales report showed net sales down 55% from the previous week.
USDA weekly crop progress report showed 8% of the total 2021 cotton crop was planted, slightly above the five-year average of 7%
The purchase of cotton by the government of India under the MSP programme has been done in various states
Cocudakl yesterday settled up by 0.4% at 2766 as supply of cottonseeds might become tight in the coming kharif season if farmers decide to expand the area under the fibre crop going by the high price that prevailed during the current season to September. Cottonseed production and quality were affected last year due to excessive rains in the key producing State of Telangana and some parts of Tamil Nadu. Due to continuous rains last year, there was lot of damage to seed production in Telangana and Tamil Nadu. Cotton sowing area in the State is expected to increase further in 2021-22 kharif in the backdrop of increase of cotton price in the open market during this season. Cotton price touched Rs 6,500 per quintal in the open market, while the Cotton Corporation of India (CCI) fixed the MSP of Rs 5,550 per quintal. At present, farmers in the State are sowing cotton in 15-lakh acres. It is expected to touch 18-lakh to 20-lakh acres in the kharif season. About 150 spinning mills in the State are generating 2-lakh jobs. The State government and Cotton Corporation of India are also in favour of increasing cotton sowing area in the State and making necessary arrangements to supply seeds and fertilisers to farmers. In Akola spot market, Cocudakl gained by 15.15 Rupees to end at 2800 Rupees per 100 kgs.Technically market is under short covering as market has witnessed drop in open interest by -0.61% to settled at 124180 while prices up 11 rupees, now Cocudakl is getting support at 2729 and below same could see a test of 2692 levels, and resistance is now likely to be seen at 2814, a move above could see prices testing 2862.
Trading Idea for the day
Cocudakl trading range for the day is 2692-2862.
Cocudakl prices gained as supply of cottonseeds might become tight in the coming kharif season
Maharashtra to write to Centre, urge rollback of cotton seed price hike
Cotton sowing area in the State is expected to increase further in 2021-22 kharif in the backdrop of increase of cotton price in the open market
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