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COTTON

Cotton yesterday settled down by -0.99% at 26090 on profit booking after prices seen supported as USDA in its latest August WASDE report cut US cotton production projection by 5.40 lakh bales and also 5.5 lakh bales reduction in world production. World's cotton demand for 2021-22 is projected as 123.33 million bales against world's production of 118.84 million bales which is 4.49 million bales lower than demand. USDA India’s cotton production is expected to be £ 29m,480 bales, unchanged from last month and up 2% from last year. USDA is monitoring whiteflies in northern Punjab and pinkflies in central India, which could affect yields, USDA said. India's harvested area is projected to be 12.9 million hectares, a slight decrease from last month and last year due to slow progress and pauses in the southwest monsoon and competition with other crops. Indian Cotton yields this month are projected to reach 489 kg per hectare, a slight increase from July of this year and a 3% increase from 2020. New crop arrivals in Pakistan have started and official KCA spot rate is at 13500 PKR per maund. Physical cotton market in Pakistan is its lifetime high level. Rate of cotton in Sindh reached at Rs.13,600 per maund and the rate of cotton in Punjab reached at Rs.13,900 to Rs.14100 per maund. In spot market, Cotton gained by 170 Rupees to end at 27330 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -9.44% to settled at 2331 while prices down -260 rupees, now Cotton is getting support at 25970 and below same could see a test of 25850 levels, and resistance is now likely to be seen at 26230, a move above could see prices testing 26370.

Trading Idea for the day

Cotton trading range for the day is 25850-26370.

Cotton dropped on profit booking after prices seen supported as USDA cut US cotton production projection by 5.40 lakh bales

World's cotton demand for 2021-22 is projected as 123.33 million bales against world's production of 118.84 million bales

USDA India’s cotton production is expected to be £ 29m,480 bales, unchanged from last month and up 2% from last year.

COCUDAKL

Cocudakl yesterday settled remain unchangeby 0% at 3134 amid tight supply situation in cottonseed is expected to continue in the coming months considering the stronger demand. The Cotton Association of India (CAI), in its July estimate of the cotton crop for the season 2020-21 beginning October 1, 2020, has reduced the crop estimate by 1.50 lakh bales to 354.50 lakh bales from its previous estimate of 356 lakh bales (equivalent to 378.25 lakh running bales). The CAI has maintained its cotton crop estimate for the Northern Zone at the same level as in its previous month’s estimate i.e. at 65.50 lakh bales. The cotton crop estimate for the Central Zone has been reduced by 0.50 lakh bales to 193.50 lakh bales. "There is a reduction of 2.50 lakh bales in the crop estimate for Gujarat state, while the crop estimates of Maharashtra & Madhya Pradesh have been increased by 1.50 lakh bales and 0.50 lakh bales respectively compared to the estimates of these states made in the previous month," CAI said. Support also seen as tight supply situation in cottonseed is expected to continue in the coming months considering the stronger demand. In Akola spot market, Cocudakl dropped by -3.6 Rupees to end at 3137.35 Rupees per 100 kgs.Technically market is under long liquidation as market has witnessed remain unchanged in open interest by 0% to settled at 57650 while prices remain unchanged 0 rupees, now Cocudakl is getting support at 2090 and below same could see a test of 1045 levels, and resistance is now likely to be seen at 2090, a move above could see prices testing 1045.

Trading Idea for the day

Cocudakl trading range for the day is 2998-3238

Cocudakl gained amid tight supply situation in cottonseed is expected to continue in the coming months considering the stronger demand.

CAI in its July estimate of the cotton crop for the season 2020-21, has reduced the crop estimate by 1.50 lakh bales to 354.50 lakh bales

The cotton crop estimate for the Central Zone has been reduced by 0.50 lakh bales to 193.50 lakh bales

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