Cotton trading range for the day is 21270-21550 - Kedia Advisory
Cotton
Cotton yesterday settled up by 0.71% at 21390 tracking rise in overseas prices as investors banked on a bullish federal supply-demand report next week and a fillip to demand from additional U.S. stimulus measures. Support also seen after CAI said India's imposition of 10% duty on cotton imports is unlikely to dent buying. The 10% import duty imposed by the world's biggest cotton producer was announced by Finance Minister Nirmala Sitharaman in her budget speech. Indian textile mills have already imported 600,000 bales of cotton in the 2020/21 marketing year that started on Oct. 1, with a further 800,000 bales likely to be sourced from outside the country during the rest of the season, Ganatra said. The country is expected to produce 36 million bales in the current marketing year, against local demand of 33 million bales, though supply of extra long staple cotton is negligible, the CAI says. A committee on cotton production and consumption of the Central Textile Ministry has revised the data of cotton crop. According to the committee, production of 371 lakh bales is estimated in 2020- 21. Earlier it was estimated to produce 358.50 lakh bales. Last year, in 2019-20, production of 365 lakh bales was done. According to the latest estimates, in Gujarat, the highest cotton project of 90.5 lakh bales has been done in 2020-21. Production per hectare is also high in Gujarat. In spot market, Cotton gained by 200 Rupees to end at 21120 Rupees. Technically market is under fresh buying as market has witnessed gain in open interest by 1.49% to settled at 6688 while prices up 150 rupees, now Cotton is getting support at 21330 and below same could see a test of 21270 levels, and resistance is now likely to be seen at 21470, a move above could see prices testing 21550.
Trading Idea for the day
Cotton trading range for the day is 21270-21550.
Cotton jumped tracking rise in overseas prices as investors banked on a bullish federal supply-demand report next week
Support also seen after CAI said India's imposition of 10% duty on cotton imports is unlikely to dent buying.
Production of 371 lakh bales is estimated in 2020-21. Earlier it was estimated to produce 358.50 lakh bales.
Technical Chart
Cocudakl
Cocudakl yesterday settled up by 3.97% at 2277 as CCI hiked base price for 2020- 21 crop by Rs 500 per candy of 356 kg. Traders CCI bought over 90 lakh bales of cotton so far this season. Just four months after Cotton Corporation of India (CCI) started procurement in all its 400 centres across the country, the operations have stopped in over 300 centres as kapas (raw unginned seed cotton) prices in most mandis in major cotton producing states have crossed the government-declared minimum support price (MSP) of Rs 5,825 per quintal. The government-owned corporation had to wade in at the beginning of the cotton marketing season (October to September) 2020-21 to begin procurement. PK Agarwal, chairmancum-managing director of CCI, said, to date, they had affected procurement of 87.96 lakh bales of cotton from 18.02 lakh farmers. India, the world’s biggest cotton grower, imposed a 10% duty on imports of the fiber to help farmers, Finance Minister Nirmala Sitharaman said. The tax comprises a basic customs duty of 5% and an additional 5% levy to finance the development of agricultural infrastructure in the country, according to the budget documents. India’s cotton output may climb to 37.12 million bales of 170 kilograms each in 2020-21, from 35.49 million bales a year earlier, according to the farm ministry. In Akola spot market, Cocudakl dropped by -4.95 Rupees to end at 2272.75 Rupees per 100 kgs. Technically market is under fresh buying as market has witnessed gain in open interest by 11.68% to settled at 85450 while prices up 87 rupees, now Cocudakl is getting support at 2217 and below same could see a test of 2157 levels, and resistance is now likely to be seen at 2307, a move above could see prices testing 2337
Trading Idea for the day
Cocudakl trading range for the day is 2157-2337.
Cocudakl prices gained as CCI hiked base price for 2020-21 crop by Rs 500 per candy of 356 kg
Traders CCI bought over 90 lakh bales of cotton so far this season.
Just four months after Cotton Corporation of India (CCI) started procurement in all its 400 centres across the country
Technical Chart
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