Cotton is getting support at 31780 and below same could see a test of 31500 levels - Kedia Advisory
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
COTTON
Cotton yesterday settled down by -0.68% at 32070 as selling pressure intensified after demand from China eased. However downside seen limited in anticipation of a possible fall in production, and the remaining cotton stock is also low, while import demand from China remains high. China will start a new round of sales from its cotton reserves, with a total 600,000 tonnes of imported and domestic cotton to be sold off in daily auctions, according to an official notice. It is the second batch of cotton to be released from reserves this year and is designed to better meet demand for the fibre from spinning companies. Both production estimates for the 2021/22 crop year and ending stocks in the U.S. were largely unchanged at 18.20 million bales and 3.40 million bales respectively, the USDA said in its November World Agricultural Supply and Demand Estimates (WASDE) report. India’s cotton production in 2021-22 season is likely to be 360.13 lakh bales of 170 kg each (equivalent to 382.64 lakh running bales of 160 kg each), which is more by 7.13 lakh bales than the previous season’s crop of 353 lakh bales, the Cotton Association of India (CAI) has said in its first estimate for the new season beginning October 1, 2021. In spot market, Cotton gained by 150 Rupees to end at 31930 Rupees.Technically market is under fresh selling as market has witnessed gain in open interest by 18.92% to settled at 4029 while prices down -220 rupees, now Cotton is getting support at 31780 and below same could see a test of 31500 levels, and resistance is now likely to be seen at 32300, a move above could see prices testing 32540.
Technical Chart
Trading Range
Cotton trading range for the day is 31500-32540.
Cotton dropped as selling pressure intensified after demand from China eased
However downside seen limited in anticipation of a possible fall in production
China will start a new round of sales from its cotton reserves, with a total 600,000 tonnes of imported and domestic cotton to be sold off in daily auctions
COCUDAKL
Cocudakl yesterday settled up by 3.2% at 2611 amid rise in oilseed prices and due to increase in demand after Corona. Support also seen amid tight supplies owing to higher input costs with rising global demand. Cotton consumption is consistently on the rise due to increasing demand and mitigating impact of COVID-19 in India, Pakistan, Mexico and Bangladesh. Meanwhile the USDA in its latest monthly report estimated global production to go up due to better crop yields in Brazil, Australia and Pakistan. Elsewhere, it is reported that the US is looking to expand cotton exports to Bangladesh, the world’s second largest importer of cotton whereas in Pakistan, cotton arrivals to ginneries reached over 6.8 million bales, up 70% from a year earlier. The Cotton Association of India (CAI) estimated cotton output at 360.13 lakh bales for the crop year (OctoberSeptember) 2021-22, due to expectation of better yield. The total cotton production in the last season is estimated at 353 lakh bales, which is 7.13 lakh bales less than the current season, the CAI said in a statement. “The cotton yield is estimated to be excellent and the farmers are expected to go for the third and fourth pickings due to good availability of water following a good monsoon,” CAI president Atul Ganatra told PTI. In Akola spot market, Cocudakl gained by 34.3 Rupees to end at 2600 Rupees per 100 kgs.Technically market is under fresh buying as market has witnessed gain in open interest by 2.4% to settled at while prices up 81 rupees, now Cocudakl is getting support at 2536 and below same could see a test of 2460 levels, and resistance is now likely to be seen at 2654, a move above could see prices testing 2696.
Technical Chart
Trading Range
Cocudakl trading range for the day is 2460-2696.
Cocudakl prices remained supported amid rise in oilseed prices and due to increase in demand after Corona.
Support also seen amid tight supplies owing to higher input costs with rising global demand.
Cotton consumption is consistently on the rise due to increasing demand and mitigating impact of COVID-19 in India
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
