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Cotton

Cotton yesterday settled up by 1.23% at 25500 Pink bollworm in 6 Bathinda villages sets off alarm bells among cotton growers The agriculture department is on its toes as it is for the second consecutive year that the pest attack has been reported in the major cash crop of southern Punjab India - Bangladesh to Sign Trade Pact for Exporting 10 Lakh Bales of Cotton Annually The MoU is going to facilitate a Government to Government transaction. This Memorandum will be signed soon and will be handled by Cotton Corporation of India Limited.

The MoU was scheduled to be signed during PM Modi’s visit to Bangladesh this year. But, due to elections in various states, it could not be signed. In spot market, Cotton gained by 60 Rupees to end at 25380 Rupees.Technically market is under short covering as market has witnessed drop in open interest by -8.41% to settled at 4173 while prices up 310 rupees, now Cotton is getting support at 25300 and below same could see a test of 25090 levels, and resistance is now likely to be seen at 25630, a move above could see prices testing 25750.

Trading Idea for the day

Cotton trading range for the day is 25090-25750.

Cotton prices gained as India’s cotton ending stocks could be lower than 75 lakh bales in the current season as domestic demand has picked up.

CCI said cotton exports would exceed 70 lakh bales and the current shipments were competitive globally.

CAI pegged domestic consumption at 325 lakh bales at its meeting last month, with mills’ demand pegged at 282 lakh bales.

Cocudakl

Cocudakl yesterday settled down by -0.24% at 2856 on profit booking after prices gained 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 dropped by -2.75 Rupees to end at 2900 Rupees per 100 kgs.Technically market is under fresh selling as market has witnessed gain in open interest by 10.73% to settled at 62440 while prices down -7 rupees, now Cocudakl is getting support at 2829 and below same could see a test of 2801 levels, and resistance is now likely to be seen at 2886, a move above could see prices testing 2915.

Trading Idea for the day

Cocudakl trading range for the day is 2801-2915.

Cocudakl dropped on profit booking after prices gained as 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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