IGI Logo

Cotton

Cotton yesterday settled down by -0.14% at 21350 as 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 dropped by -10 Rupees to end at 21050 Rupees. Technically market is under fresh selling as market has witnessed gain in open interest by 4.36% to settled at 6291 while prices down -30 rupees, now Cotton is getting support at 21310 and below same could see a test of 21260 levels, and resistance is now likely to be seen at 21430, a move above could see prices testing 21500.

Trading Idea for the day

Cotton trading range for the day is 21260-21500.

Cotton dropped as cotton procurement by the Cotton Corporation of India (CCI) has almost come to a stop.

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.

Technical Chart

Cocudakl

Cocudakl yesterday settled up by 1.52% at 2136 as the Cotton Corporation of India plans to export at least 10 lakh bales of cotton during the current season. 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. 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. The CCI had originally estimated a purchase of 100-125 lakh bales at the start of the season. In Akola spot market, Cocudakl dropped by -4.95 Rupees to end at 2214.6 Rupees per 100 kgs. Technically market is under fresh buying as market has witnessed gain in open interest by 0.81% to settled at 89880 while prices up 32 rupees, now Cocudakl is getting support at 2111 and below same could see a test of 2086 levels, and resistance is now likely to be seen at 2168, a move above could see prices testing 2200.

Trading Idea for the day

Cocudakl trading range for the day is 2086-2200.

Cocudakl prices gains as the Cotton Corporation of India plans to export at least 10 lakh bales of cotton during the current season.

CCI had procured almost 85 lakh bales of cotton at minimum support price (MSP) since the beginning of the current cotton season

CCI almost stops procurement as cotton prices rise up to Rs 6,000/quintal

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