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COTTON

Cotton yesterday settled up by 2.31% at 30970 as unseasonal rains in parts of Gujarat has worried cotton growers. Farmers in Saurasthra and Central Gujarat informed that a drastic change in the climate with rains and strong winds in some parts has impacted cotton. In its first advance estimate, the Gujarat Government has projected cotton production of 80.95 lakh bales (each of 170 kg). The International Cotton Advisory Committee has lowered its forecast for global prices for 2021-22 (Aug-Jul) due to a rise in global production and ending stocks estimate, the agency said in a report. In 2021-22 season, the committee estimated global ending stocks for the season at 20.5 mln tn, slightly higher than 20.4 mln tn in the previous season. Global consumption is seen almost steady at 25.6 mln tn, it said. The agency sees global export for the season at 10.2 mln tn, as against 10.6 mln tn a year ago. Global production for the ongoing season is estimated at 25.7 mln tn, compared with 24.3 mln tn in the previous season. The rise has largely been attributed to higher production in the US and Brazil. In the US, cotton production is estimated at 3.96 mln tn, against 3.18 mln tn a year ago. In spot market, Cotton dropped by -10 Rupees to end at 31010 Rupees.Technically market is under short covering as market has witnessed drop in open interest by -3.14% to settled at 4624 while prices up 700 rupees, now Cotton is getting support at 30560 and below same could see a test of 30140 levels, and resistance is now likely to be seen at 31220, a move above could see prices testing 31460.

Technical Chart

Trading Idea for the day

Cotton trading range for the day is 30140-31460. 

Cotton prices gained as unseasonal rains in parts of Gujarat has worried cotton growers.

In its first advance estimate, the Gujarat Government has projected cotton production of 80.95 lakh bales.

The International Cotton Advisory Committee has lowered its forecast for global prices for 2021-22 due to a rise in global production and ending stocks estimate

COCUDAKL

Cocudakl yesterday settled up by 1.11% at 2726 amid tight supplies owing to higher input costs with rising global demand. However, upside seen limited weighed by worries over the likely impact of the Omicron coronavirus variant on 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 gained by 6.85 Rupees to end at 2761.55 Rupees per 100 kgs.Technically market is under short covering as market has witnessed drop in open interest by -3.44% to settled at while prices up 30 rupees, now Cocudakl is getting support at 2690 and below same could see a test of 2655 levels, and resistance is now likely to be seen at 2751, a move above could see prices testing 2777.

Technical Chart

Trading Idea for the day

Cocudakl trading range for the day is 2655-2777.

Cocudakl gained amid tight supplies owing to higher input costs with rising global demand.

However, upside seen limited weighed by worries over the likely impact of the Omicron coronavirus variant on demand.

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

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