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Cotton

Cotton yesterday settled up by 0.52% at 21240 as support seen after CAI said India's imposition of 10% duty on cotton imports is unlikely to dent buying. The 10% import duty imposed by the world's biggest cotton producer was announced by Finance Minister Nirmala Sitharaman in her budget speech. Indian textile mills have already imported 600,000 bales of cotton in the 2020/21 marketing year that started on Oct. 1, with a further 800,000 bales likely to be sourced from outside the country during the rest of the season, Ganatra said. The country is expected to produce 36 million bales in the current marketing year, against local demand of 33 million bales, though supply of extra long staple cotton is negligible, the CAI says. A committee on cotton production and consumption of the Central Textile Ministry has revised the data of cotton crop. According to the committee, production of 371 lakh bales is estimated in 2020- 21. Earlier it was estimated to produce 358.50 lakh bales. Last year, in 2019-20, production of 365 lakh bales was done. According to the latest estimates, in Gujarat, the highest cotton project of 90.5 lakh bales has been done in 2020-21. Production per hectare is also high in Gujarat. According to the projection, Gujarat will produce 676.86 kg of cotton per hectare, while India's average cotton yield is estimated at 486.76 kg per hectare. In spot market, Cotton gained by 60 Rupees to end at 20920 Rupees. Technically market is under short covering as market has witnessed remain unchanged in open interest by 0% to settled at 6590 while prices up 110 rupees, now Cotton is getting support at 21140 and below same could see a test of 21040 levels, and resistance is now likely to be seen at 21300, a move above could see prices testing 21360

Trading Idea for the day

Cotton trading range for the day is 21040-21360.

Cotton prices gains as support seen after CAI said India's imposition of 10% duty on cotton imports is unlikely to dent buying.

The 10% import duty imposed by the world's biggest cotton producer was announced by Finance Minister Nirmala Sitharaman

Production of 371 lakh bales is estimated in 2020-21. Earlier it was estimated to produce 358.50 lakh bales.

Technical Chart

Cocudakl

Cocudakl yesterday settled up by 0.37% at 2167 on short covering after prices dropped as just four months after Cotton Corporation of India (CCI) started procurement in all its 400 centres across the country, the operations have stopped in over 300 centres as kapas (raw unginned seed cotton) prices in most mandis in major cotton producing states have crossed the government-declared minimum support price (MSP) of Rs 5,825 per quintal. The government-owned corporation had to wade in at the beginning of the cotton marketing season (October to September) 2020-21 to begin procurement. PK Agarwal, chairmancum-managing director of CCI, said, to date, they had affected procurement of 87.96 lakh bales of cotton from 18.02 lakh farmers. India, the world’s biggest cotton grower, imposed a 10% duty on imports of the fiber to help farmers, Finance Minister Nirmala Sitharaman said. The tax comprises a basic customs duty of 5% and an additional 5% levy to finance the development of agricultural infrastructure in the country, according to the budget documents. India’s cotton output may climb to 37.12 million bales of 170 kilograms each in 2020-21, from 35.49 million bales a year earlier, according to the farm ministry. Imports are expected to fall to 1.4 million bales this year from 1.55 million bales in 2019-20, according to the Cotton Association of India. In Akola spot market, Cocudakl dropped by -4.95 Rupees to end at 2228.2 Rupees per 100 kgs. Technically market is under short covering as market has witnessed drop in open interest by - 5.39% to settled at 66010 while prices up 8 rupees, now Cocudakl is getting support at 2151 and below same could see a test of 2136 levels, and resistance is now likely to be seen at 2182, a move above could see prices testing 2198. Trading Idea for the day www.kediaadvisory.com KEDIA ADVISORY C

Trading Idea for the day

Cocudakl trading range for the day is 2136-2198.

Cocudakl gained on short covering after prices dropped as CCI stops procurement in over 300 centres

India’s cotton output may climb to 37.12 million bales of 170 kilograms each in 2020-21, from 35.49 million bales a year earlier

India, the world’s biggest cotton grower, imposed a 10% duty on imports of the fiber to help farmers

Technical Chart

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