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COTTON

Cotton yesterday settled up by 1.42% at 32030 after reports heavy rains in November damaged cotton crop over 44,200 ha cotton has been affected in Andhra Pradesh. A preliminary report showed that 13 districts in the state had been affected and ready-toharvest crops like cotton were the worst hit, the official said. Total kharif sowing in Andhra Pradesh was pegged at 3.6 mln ha in the 2021-22 (Jul-Jun) season, while around 634,000 ha has been sown so far in the ongoing rabi season, according to the state farm department data. Arrivals of cotton in spot markets were at 181,500 bales, higher than 179,500 bales on Wednesday. Of the total quantity, around 11,000 bales arrived in Haryana, 3,000 bales in Punjab, and 18,000 bales in Rajasthan. Arrivals were pegged at 40,000 bales in Gujarat, around 14,000 bales in Madhya Pradesh, and 45,000 bales in Maharashtra. Nearly 15,000 bales arrived in Karnataka, 3,500 in Odisha, and 32,000 bales in Telangana and Andhra Pradesh combined. China's 2021 cotton output fell 3% to 5.73 million tonnes, said the National Bureau of Statistics. Planted acreage for the fibre fell by 4.4% to 3.03 million hectares but yields increased slightly during the period. The USDA also lowered cotton global production and ending stocks estimates for the 2021/22 crop year in its monthly supply-demand report. In spot market, Cotton gained by 100 Rupees to end at 31730 Rupees.Technically market is under short covering as market has witnessed drop in open interest by -0.87% to settled at 3642 while prices up 450 rupees, now Cotton is getting support at 31770 and below same could see a test of 31500 levels, and resistance is now likely to be seen at 32200, a move above could see prices testing 32360

Trading Idea for the day

Cotton trading range for the day is 31500-32360

Cotton prices gained after reports heavy rains in November damaged cotton crop over 44,200 ha in Andhra Pradesh.

A preliminary report showed that 13 districts in the state had been affected and ready-to-harvest crops like cotton were the worst hit

Arrivals of cotton in spot markets were at 181,500 bales, higher than 179,500 bales.

COCUDAKL

Cocudakl yesterday settled up by 2.35% at 2878 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. The index has been on a march higher since August. In Akola spot market, Cocudakl gained by 28.05 Rupees to end at 2847.5 Rupees per 100 kgs.Technically market is under fresh buying as market has witnessed gain in open interest by 7.67% to settled at 78890 while prices up 66 rupees, now Cocudakl is getting support at 2832 and below same could see a test of 2787 levels, and resistance is now likely to be seen at 2906, a move above could see prices testing 2935.

Trading Idea for the day

Cocudakl trading range for the day is 2787-2935.

Cocudakl gains 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.

The U.S. cotton 2021/22 supply and demand forecasts are largely unchanged this month, with only a slight increase in production.

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