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Cotton

Cotton yesterday settled down by -0.08% at 25190 pared gains on profit booking after seen supported earlier as pink bollworm attack on cotton crop has been reported in some areas in Bathinda district. Farmers are claiming damage on the cotton sown earlier. The pink bollworm attack has been reported in Talwandi Sabo, Sangat and Rama blocks along with few villages adjoining Bathinda city. Gujarat’s cotton acreage is likely to increase 10% this kharif season with farmers getting high prices for the natural fibre last year.

Currently, the area under cotton cultivation in the state has increased to 16.50 lakh hectares as on July 5, compared to 15.72 lakh hectares during the same period last year. “At present, the area under cotton cultivation has increased by about 7% when compared with the same period last year,” said Arvind Pan, president, Saurashtra Cotton Ginners Association (SCGA). CAI demand for withdrawal of 10 per cent customs duty on cotton imports.

Trade body Cotton Association of India (CAI) has expressed concerns of India losing its competitiveness to China, Pakistan and Bangladesh in the international market. With 10 per cent customs duty on cotton varieties including extra-long staple (ELS), the export-oriented garments and cotton-madeups become costlier thereby giving an edge to the close competitors.

In spot market, Cotton gained by 40 Rupees to end at 25280 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -0.35% to settled at 4795 while prices down -20 rupees, now Cotton is getting support at 25030 and below same could see a test of 24870 levels, and resistance is now likely to be seen at 25360, a move above could see prices testing 25530.

Trading Idea for the day

Cotton trading range for the day is 24870-25530.

Cotton pared gains on profit booking after seen supported earlier as farmers in Punjab seen worried as pink bollworm attacks cotton crop.

Gujarat’s cotton acreage may grow 10%

Currently, the area under cotton cultivation in the state has increased to 16.50 lakh hectares.

COCUDAKL

Cocudakl yesterday settled up by 1.01% at 2900 as there is a possibility of damage to the crops which have been sown due to less rain for the next several days. The tight supply situation in cottonseed is expected to continue in the coming months considering the stronger demand. Support seen as falling arrival numbers of raw cotton due to the lean supply season and thin stocks lying with ginners and farmers has resulted in supply crunch in the market.

The demand and supply balance sheet for cotton is indicative of prices to remain firm in coming months. The USDA in its latest report has pegged global ending stocks in 2021/22 down 1.7 million bales to 89.3 million versus 2020/21.

Global consumption estimate for is also higher for 2021/22, up 1.1 million bales year on year. World trade on the other hand is estimated 1.1 million bales higher, considering better import possibilities from China, Bangladesh, and Turkey. The industry remains optimistic demand for Indian cotton products to improve in near term from the global economic rebound. The CAI has kept its consumption estimate for the current crop year at 330 lakh bale in the previous month.

In Akola spot market, Cocudakl gained by 13.55 Rupees to end at 2913.55 Rupees per 100 kgs.Technically market is under fresh buying as market has witnessed gain in open interest by 12.99% to settled at 54800 while prices up 29 rupees, now Cocudakl is getting support at 2840 and below same could see a test of 2781 levels, and resistance is now likely to be seen at 2958, a move above could see prices testing 3017.

Trading Idea for the day

Cocudakl trading range for the day is 2781-3017.

Cocudakl prices gained the tight supply situation in cottonseed is expected to continue.

Support seen as falling arrival numbers of raw cotton due to the lean supply season and thin stocks resulted in supply crunch in the market.

Support seen amid falling arrival numbers of raw cotton due to the lean supply season and thin stocks.

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