IGI Logo

Cotton

Cotton yesterday settled down by -1.08% at 42240 on profit booking after prices rose on fears of shortfall in production and higher demand for raw cotton for export. The arrival of cotton in the country is continuously declining, at present the daily arrivals are 65 to 75 lakh bales which will further decrease in the coming week. At the moment, there are very few ginning mills running in the country, the stock of best quality cotton is very low at the moment, similarly the stock of Binola is also low. The price of cotton yarn is continuously increasing, but there is no major demand in the domestic market and export market, due to which the Spinners' Mills Association has cut production, due to which cotton industries will benefit in the long run. Spinning mills are buying cotton at higher prices as the balance sheet of cotton is becoming tighter continuously. In the current year, due to quality variation in the production of cotton from the beginning, there was a possibility of a sharp decline in the production and given the current arrivals and stock positions, there is no possibility of increasing the production of cotton in the country by 280 to 290 lakh bales. In spot market, Cotton gained by 60 Rupees to end at 43410 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -2.13% to settled at 5616 while prices down -460 rupees, now Cotton is getting support at 41740 and below same could see a test of 41230 levels, and resistance is now likely to be seen at 43070, a move above could see prices testing 43890

Trading Idea for the day

Cotton trading range for the day is 41230-43890.

Cotton dropped on profit booking after prices rose on fears of shortfall in production and higher demand for raw cotton for export.

The arrival of cotton is continuously declining, at present the daily arrivals are 65 to 75 lakh bales which will further decrease in the coming week.

There are very few ginning mills running in the country, the stock of best quality cotton is very low at the moment

Cocudakl

Cocudakl yesterday settled down by -0.06% at 3175 on profit booking after prices seen supported on fears of a shortfall in production and higher demand for export. CAI in its latest report has reduced its cotton production by 5.00 lakh bales to 343.13 lakh bales (1 bale of 170 kg) for 2021-22. Consumption also declined by 5 lakh bales to 340 lakh bales, while export and import figures remain unchanged at 15-45 lakh bales respectively. The government has estimated the production of cotton under the second advance estimate for the year 2021-22 at 340 lakh bales as against 362 lakh bales in the first estimate. The USDA in its monthly report has cut India's cotton production to 27.5 million bales from 28 million bales last month, while the US, the largest exporter, cut cotton production by 3.61% to 17.6 million bales. As per estimate, cotton production in Gujarat is expected to be lower in 2021-22 season because of lesser sown area around 22.53 lakh hectares as compared to 25.53 lakh hectares in the previous season. Support also seen amid expectations of firm demand, particularly from China and tight supplies. An urgency in obtaining the supplies and a buyout of cotton futures by hedge funds also supported the cotton market. In Akola spot market, Cocudakl dropped by -39.15 Rupees to end at 3300 Rupees per 100 kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -2.23% to settled at 78470 while prices down -2 rupees, now Cocudakl is getting support at 3151 and below same could see a test of 3126 levels, and resistance is now likely to be seen at 3207, a move above could see prices testing 3238.

Trading Idea for the day

Cocudakl trading range for the day is 3126-3238.

Cocudakl settled flat on profit booking after prices seen supported on fears of a shortfall in production and higher demand for export.

CAI in its latest report has reduced its cotton production by 5.00 lakh bales to 343.13 lakh bales for 2021-22.

The USDA in its monthly report has cut India's cotton production to 27.5 million bales from 28 million bales last month

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