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COTTON

Cotton yesterday settled down by -0.29% at 31420 as the chances of re-emergence of the Covid through the Omicron variant is said to be having a global impact. The slump in the prices of cotton crop is also being seen as the direct impact of this. Supply chain bottlenecks and the emergence of the Omicron variant may affect consumer buying. Cotton prices are expected to soften from their peak levels of around ₹8,000-8,800 a quintal (raw cotton) as the arrivals gain momentum said CAI. Acknowledging that the cotton arrivals in India have been delayed partly due to the unseasonal rains and other factors, Atul Ganatra, President, CAI, stated that "cotton prices in India will fall once the arrivals pick up." Cotton farmers hit hard in Andhra Pradesh as CCI yet to enter market, ensure MSP- Farmers in the state are being exploited heavily this year, as the CCI is yet to enter the market. The private players in the market are offering throwaway price to the farmers, denying minimum support price (MSP) offered by the state government. Mills are cautiously buying cotton for 10-day production needs and hoping that new arrivals will bring down the price in India. Countries like Vietnam and Bangladesh have also increased textile manufacturing and their demand for cotton. In spot market, Cotton dropped by -10 Rupees to end at 31620 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -1.06% to settled at 4558 while prices down -90 rupees, now Cotton is getting support at 31240 and below same could see a test of 31070 levels, and resistance is now likely to be seen at 31540, a move above could see prices testing 31670.

Technical Chart

Trading Range

Cotton trading range for the day is 31070-31670.

Cotton prices dropped as the chances of re-emergence of the Covid through the Omicron variant is said to be having a global impact.

Cotton prices soften from their peak levels as the arrivals gain momentum said CAI.

According to the Punjab Mandi Board data, 9.57 lakh quintal of cotton was purchased in the state till Saturday

COCUDAKL

Cocudakl yesterday settled down by -0.47% at 2774 on profit booking after gained amid tight supplies owing to higher input costs with rising global demand. However, upside seen limited weighed by worries over the likely impact of the Omicron coronavirus variant on demand. 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 5.4 Rupees to end at 2835.7 Rupees per 100 kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -2.24% to settled at while prices down -13 rupees, now Cocudakl is getting support at 2760 and below same could see a test of 2746 levels, and resistance is now likely to be seen at 2793, a move above could see prices testing 2812.

Technical Chart

Trading Range

Cocudakl trading range for the day is 2746-2812.

Cocudakl dropped on profit booking after gained amid tight supplies owing to higher input costs with rising global demand.

Support also seen as dairy prices hit 7-year high on global dairy trade auction as tight milk supply underpins demand

The global cotton balance sheets for 2021/22 include higher production and consumption, and slightly lower ending stocks.

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