Cotton yesterday settled up by 0.56% at 21550 as support seen after USDA projecting lower opening stocks, production and ending stocks this season (October 2020-September 2021), raising hopes of the commodity exports from India. Going by current trends, India’s cotton exports can touch 65 lakh bales (170 kg each) and it can help reduce the country’s huge carryover stocks from last season. However, Cotton Association of India (CAI) President Atul Ganatra said export demand is currently slow due to novel Coronavirus (COVID-19) lockdown in Europe and few more countries. His association has pegged exports at 54 lakh bales this season. The Cotton Corporation of India (CCI) has permitted those who buy cotton from it through e-auctions, to lock in the cotton prices. Chairman and Managing Director of the CCI, Pradeep Kumar Agarwal, said the facility has been introduced to ensure price security for textile mills. Textile mills can buy cotton in multiples of 100 bales through e-auctions, and lock-in the cotton price for 30 days without any charge. The units can lock-in the prices for 60 days from the date of contract by paying ₹250 more for each bale; for 90 days by paying ₹500 for each bale. In spot market, Cotton gained by 90 Rupees to end at 21000 Rupees. Technically market is under fresh buying as market has witnessed gain in open interest by 33.38% to settled at 4711 while prices up 120 rupees, now Cotton is getting support at 21470 and below same could see a test of 21390 levels, and resistance is now likely to be seen at 21610, a move above could see prices testing 21670.
Trading Idea for the day
Cotton trading range for the day is 21390-21670
Cotton prices gained as support seen after USDA projecting lower opening stocks, production and ending stocks raising hopes of exports from India
India’s cotton exports can touch 65 lakh bales and it can help reduce the country’s huge carryover stocks from last season
Cotton Corporation introduces lock-in period for prices
Cocudakl yesterday settled up by 1.56% at 2082 tracking rise in cotton prices as the Cotton Corporation of India plans to export at least 10 lakh bales of cotton during the current season. CCI had procured almost 85 lakh bales of cotton at minimum support price (MSP) since the beginning of the current cotton season (October 2020-September 2021). With cotton prices rising, the CCI had reduced the purchases at MSP. The CCI is active mainly in Telangana and Maharashtra. It will continue to be present in the market till the end of the season. Of the cotton procured so far, it had sold 12 lakh bales to the domestic textile sector. With prices of quality raw cotton rising up to Rs 6,000 per quintal this week, cotton procurement by the Cotton Corporation of India (CCI) has almost come to a stop, top officials at the CCI said. Cotton procurement under the minimum support price (MSP) programme has reduced with prices going up. Cotton arrivals are staggered with around 210 lakh bales having already arrived into the market with another 140-150 lakh bales remaining with farmers. The CCI has procured 85 lakh bales and may procure another 5-10 lakh bales. The CCI had originally estimated a purchase of 100-125 lakh bales at the start of the season. In Akola spot market, Cocudakl dropped by -4.95 Rupees to end at 2086.75 Rupees per 100 kgs. Technically market is under short covering as market has witnessed drop in open interest by -3.54% to settled at 91610 while prices up 32 rupees, now Cocudakl is getting support at 2061 and below same could see a test of 2040 levels, and resistance is now likely to be seen at 2094, a move above could see prices testing 2106.
Trading Idea for the day
Cocudakl trading range for the day is 2040-2106
Cocudakl prices gains tracking rise in cotton prices as the Cotton Corporation of India plans to export at least 10 lakh bales of cotton during the current season
CCI had procured almost 85 lakh bales of cotton at minimum support price (MSP) since the beginning of the current cotton season
CCI almost stops procurement as cotton prices rise up to Rs 6,000/quintal
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