IGI Logo

COTTON

Cotton yesterday settled up by 0.93% at 33620 amid firm demand, due to production concerns and tight supplies caused by shipping woes. Inventories at ICE US monitored depots fell to all-time lows, slumping by almost 99% this year. Meanwhile, the USDA in its December report estimated 2021/22 global production to drop by 200,000 bales as a 1.0 million bale drop in Pakistan more than offset gains in Benin, Turkey, Uzbekistan, and Cameroon. Also, world cotton ending stocks were projected 1.2 million bales lower due to lower beginning stocks, smaller production and slightly higher consumption. Mali's cotton harvest for the 2021/22 season is expected to be 731,000 tonnes, 10% below an earlier forecast due to insufficient rain in some areas and localised floods elsewhere, data from the cotton producers' association showed. In March, the government forecast that cotton production would rebound this season to 810,000 tonnes after plunging nearly 80% in 2020/21 to 147,200 tonnes because the pandemic upended demand and farmers went on strike. However upside seen limited on expectations of lower demand for garments due to the resurgence of new Omicron coronavirus variant, higher supply, and as higher prices are hurting demand for supplies from top shipper US. In spot market, Cotton gained by 480 Rupees to end at 33160 Rupees.Technically market is under fresh buying as market has witnessed gain in open interest by 2.79% to settled at 6407 while prices up 310 rupees, now Cotton is getting support at 33370 and below same could see a test of 33120 levels, and resistance is now likely to be seen at 33900, a move above could see prices testing 34180.

Trading Idea for the day

Cotton trading range for the day is 33120-34180

Cotton gains amid firm demand, due to production concerns and tight supplies caused by shipping woes.

Inventories at ICE US monitored depots fell to all-time lows, slumping by almost 99% this year.

World cotton ending stocks were projected 1.2 million bales lower due to lower beginning stocks, smaller production and slightly higher consumption.

COCUDAKL

Cocudakl yesterday settled up by 2.4% at 2983 as support came after rains and hailstorm in few parts of Maharashtra. amid tight supplies owing to higher input costs with rising global demand. However, upside seen limited as the chances of reemergence of the Covid through the Omicron variant is said to be having a global impact. The global cotton balance sheets for 2021/22 include higher production and consumption, and slightly lower ending stocks. The projected global consumption is up 700,000 bales. The world production forecast is 1.5 million bales higher as gains for Brazil, Australia, Pakistan, and the United States more than offset a 200,000- bale decline in Greece following unusually heavy October rainfall. World ending stocks are projected at 86.9 million bales, 200,000 bales lower than in October, and 2.4 million bales lower than in 2020/21. The broader-based view for cotton is therefore positive from a pricing perspective, which implies that cotton cake prices shall tend to remain in an upward trend in forthcoming weeks. Dairy prices rose at the global auction, surpassing their March peak to touch a fresh seven-year high, as tight milk supply underpins demand for New Zealand’s biggest export commodity. The Global Dairy Trade price index increased 1.4 per cent at the latest auction, to touch its highest level since March 2014. In Akola spot market, Cocudakl gained by 34.4 Rupees to end at 2967.95 Rupees per 100 kgs.Technically market is under fresh buying as market has witnessed gain in open interest by 1.4% to settled at 65120 while prices up 70 rupees, now Cocudakl is getting support at 2938 and below same could see a test of 2894 levels, and resistance is now likely to be seen at 3008, a move above could see prices testing 3034.

Trading Idea for the day

Cocudakl trading range for the day is 2894-3034.

Cocudakl prices gained as support came after rains and hailstorm in few parts of Maharashtra.

Support also seen amid tight supplies owing to higher input costs with rising global demand.

However, upside seen limited as the chances of re-emergence of the Covid through the Omicron variant is said to be having a global impact.

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