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Cotton

Cotton yesterday settled up by 0.67% at 21090 as customs duty on cotton increased to 10%. However upside seen limited cotton procurement by the Cotton Corporation of India (CCI) has almost come to a stop, top officials at the CCI said. Cotton procurement under the minimum support price (MSP) programme has reduced with prices going up. Cotton arrivals are staggered with around 210 lakh bales having already arrived into the market with another 140- 150 lakh bales remaining with farmers. The CCI has procured 85 lakh bales and may procure another 5-10 lakh bales. USDA projecting lower opening stocks, production and ending stocks this season (October 2020-September 2021), raising hopes of the commodity exports from India. Going by current trends, India’s cotton exports can touch 65 lakh bales (170 kg each) and it can help reduce the country’s huge carryover stocks from last season. However, Cotton Association of India (CAI) President Atul Ganatra said export demand is currently slow due to novel Coronavirus (COVID-19) lockdown in Europe and few more countries. His association has pegged exports at 54 lakh bales this season. The Cotton Corporation of India (CCI) has permitted those who buy cotton from it through e-auctions, to lock in the cotton prices. In spot market, Cotton gained by 20 Rupees to end at 20850 Rupees. Technically market is under fresh buying as market has witnessed gain in open interest by 0.53% to settled at 6632 while prices up 140 rupees, now Cotton is getting support at 20960 and below same could see a test of 20840 levels, and resistance is now likely to be seen at 21220, a move above could see prices testing 21360.

Trading Idea for the day

Cotton trading range for the day is 20840-21360

Cotton prices gained as customs duty on cotton increased to 10%

However upside seen limited cotton procurement by the Cotton Corporation of India (CCI) has almost come to a stop, top officials at the CCI said.

Cotton procurement under the minimum support price (MSP) programme has reduced with prices going up.

Technical Chart

Cocudakl

Cocudakl yesterday settled up by 1.25% at 2105 on short covering tracking rise in cotton prices after customs duty on cotton increased to 10%. However upside seen limited as the production in the country is currently exceeding. The price of maize used as an alternative to cottonseed cake has recently dropped by 150, due to which maize husk is available in the market from 1400 to 1500 which is cheaper than cottonseed cake. Sowing has increased in the current year, now there seems no possibility of harvesting. CCI had procured almost 85 lakh bales of cotton at minimum support price (MSP) since the beginning of the current cotton season (October 2020-September 2021). With cotton prices rising, the CCI had reduced the purchases at MSP. The CCI is active mainly in Telangana and Maharashtra. It will continue to be present in the market till the end of the season. Of the cotton procured so far, it had sold 12 lakh bales to the domestic textile sector. With prices of quality raw cotton rising up to Rs 6,000 per quintal this week, cotton procurement by the Cotton Corporation of India (CCI) has almost come to a stop, top officials at the CCI said. Cotton procurement under the minimum support price (MSP) programme has reduced with prices going up. In Akola spot market, Cocudakl dropped by -4.95 Rupees to end at 2166.55 Rupees per 100 kgs. Technically market is under short covering as market has witnessed drop in open interest by -2.29% to settled at 82370 while prices up 26 rupees, now Cocudakl is getting support at 2092 and below same could see a test of 2078 levels, and resistance is now likely to be seen at 2123, a move above could see prices testing 2140.

Trading Idea for the day

Cocudakl trading range for the day is 2078-2140

Cocudakl prices gained on short covering tracking rise in cotton prices after customs duty on cotton increased to 10%.

However upside seen limited as the production in the country is currently exceeding. The

Cotton arrivals are staggered with around 210 lakh bales having already arrived into the market with another 140-150 lakh bales remaining with farmers

Technical Chart

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