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COTTON

Cotton yesterday settled down by -2.04% at 30270 as the arrivals gain momentum, stated the chief of the top cotton body Cotton Association of India (CAI). Pressure also seen weighed by worries over the likely impact of the Omicron coronavirus variant on demand for the natural fiber. China's cotton reserves management company said it will suspend its sales from Dec. 1 based on the current market situation. The Cotton Outlook has scaled up its estimate for global production in 2021-22 (Aug-Jul) by 97,000 tn to 26.0 mln tn, the agency said in its November report. The estimate has been revised upward as production in the African Franc zone and Turkey is expected to be higher. The agency has maintained its output estimate in the US at 3.92 mln tn. Global cotton ending stocks are estimated at 110,000 tn for the ongoing 2021-22 season. Arrivals of cotton in spot markets were at 184,300 bales (1 bale = 170 kg), higher than 171,500 bales on Monday. Of the total quantity, around 10,000 bales arrived in Haryana, 2,800 in Punjab, and 17,000 bales in Rajasthan. Arrivals were pegged at 42,000 bales in Gujarat, around 15,000 bales in Madhya Pradesh, and 44,000 bales in Maharashtra. In spot market, Cotton dropped by -250 Rupees to end at 31020 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -1.57% to settled at 4774 while prices down -630 rupees, now Cotton is getting support at 29940 and below same could see a test of 29620 levels, and resistance is now likely to be seen at 30710, a move above could see prices testing 31160.

Technical Chart

Trading Range

Cotton trading range for the day is 29620-31160.

Cotton prices dropped after CAI stated the arrivals gain momentum.

Pressure also seen weighed by worries over the likely impact of the Omicron coronavirus variant on demand for the natural fiber.

China's cotton reserves management company said it will suspend its sales from Dec. 1 based on the current market situation.

COCUDAKL

Cocudakl yesterday settled down by -1.71% at 2696 on profit booking weighed by worries over the likely impact of the Omicron coronavirus variant on demand. However, downside seen limited amid tight supplies owing to higher input costs with rising global demand. Cotton consumption is consistently on the rise due to increasing demand and mitigating impact of COVID-19 in India, Pakistan, Mexico and Bangladesh. Meanwhile the USDA in its latest monthly report estimated global production to go up due to better crop yields in Brazil, Australia and Pakistan. Elsewhere, it is reported that the US is looking to expand cotton exports to Bangladesh, the world’s second largest importer of cotton whereas in Pakistan, cotton arrivals to ginneries reached over 6.8 million bales, up 70% from a year earlier. The Cotton Association of India (CAI) estimated cotton output at 360.13 lakh bales for the crop year (October-September) 2021-22, due to expectation of better yield. The total cotton production in the last season is estimated at 353 lakh bales, which is 7.13 lakh bales less than the current season, the CAI said in a statement. “The cotton yield is estimated to be excellent and the farmers are expected to go for the third and fourth pickings due to good availability of water following a good monsoon,” CAI president Atul Ganatra told PTI. In Akola spot market, Cocudakl dropped by -28.3 Rupees to end at 2754.7 Rupees per 100 kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -3.94% to settled at while prices down -47 rupees, now Cocudakl is getting support at 2652 and below same could see a test of 2608 levels, and resistance is now likely to be seen at 2753, a move above could see prices testing 2810.

Technical Chart

Trading Range

Cocudakl trading range for the day is 2608-2810.

Cocudakl dropped on profit booking weighed by worries over the likely impact of the Omicron coronavirus variant on demand.

However downside seen limited amid tight supplies owing to higher input costs with rising global demand.

Cotton consumption is consistently on the rise due to increasing demand and mitigating impact of COVID-19 in India

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