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COTTON

Cotton yesterday settled up by 1.1% at 34100 amid firm demand and tight supplies caused by shipping woes. Inventories at ICE US monitored depots fell to all-time lows, slumping by almost 99% this year. The U.S. Department of Agriculture's weekly export sales report showed net sales of 243,900 running bales for 2021/2022, with China being the top buyer. Speculators cut net long positions in cotton futures by 9 contracts to 69,204 in the week to Dec. 21, data from the Commodity Futures Trading Commission showed. 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 spot market, Cotton gained by 250 Rupees to end at 33370 Rupees.Technically market is under short covering as market has witnessed drop in open interest by -0.42% to settled at 6635 while prices up 370 rupees, now Cotton is getting support at 33870 and below same could see a test of 33630 levels, and resistance is now likely to be seen at 34240, a move above could see prices testing 34370.

Trading Idea for the day

Cotton trading range for the day is 33630-34370.

Cotton gained amid firm demand and tight supplies caused by shipping woes.

The USDA’s weekly export sales report showed net sales of 243,900 running bales for 2021/2022, with China being the top buyer.

Speculators cut net long positions in cotton futures by 9 contracts to 69,204 in the week to Dec. 21, data from the CFTC showed

COCUDAKL

Cocudakl yesterday settled up by 0.64% at 3003 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 re-emergence 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 16.9 Rupees to end at 3001.35 Rupees per 100 kgs.Technically market is under short covering as market has witnessed drop in open interest by -5.93% to settled at 56600 while prices up 19 rupees, now Cocudakl is getting support at 2975 and below same could see a test of 2946 levels, and resistance is now likely to be seen at 3031, a move above could see prices testing 3058

Trading Idea for the day

Cocudakl trading range for the day is 2946-3058.

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.

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