IGI Logo

COTTON

Cotton yesterday settled up by 0.16% at 31470 after reports that China's 2021 cotton output fell 3% to 5.73 million tonnes, said the National Bureau of Statistics. Planted acreage for the fibre fell by 4.4% to 3.03 million hectares but yields increased slightly during the period. Arrivals of cotton in spot markets were at 166,500 bales, higher by 21.97% than 136,500 bales. Of the total quantity, around 12,000 bales arrived in Haryana, 3,500 in Punjab, and 19,000 bales in Rajasthan. Arrivals were pegged at 40,000 bales in Gujarat, around 15,000 bales in Madhya Pradesh, and 35,000 bales in Maharashtra. Nearly 15,000 bales arrived in Karnataka, 2,000 in Odisha, and 25,000 bales in Telangana and Andhra Pradesh combined. The USDA also lowered cotton global production and ending stocks estimates for the 2021/22 crop year in its monthly supply-demand report. The December World Agricultural Supply and Demand Estimates (WASDE) report, which forecast global ending stocks at 85.73 million bales for the 2021/22 crop year, about 1.2 million bales lower than the previous month, citing lower output and slightly higher consumption. But the report also slightly raised its U.S. production estimate to 18.28 million bales, while ending stocks estimates were unchanged at 3.40 million bales. In spot market, Cotton gained by 30 Rupees to end at 31640 Rupees.Technically market is under short covering as market has witnessed drop in open interest by -6.77% to settled at 3799 while prices up 50 rupees, now Cotton is getting support at 31290 and below same could see a test of 31110 levels, and resistance is now likely to be seen at 31580, a move above could see prices testing 31690.

Technical Chart

Trading Range

Cotton trading range for the day is 31110-31690.

Cotton prices gains after reports that China's 2021 cotton output fell 3% to 5.73 million tonnes

India's 2021/22 cotton production seen at 28 mln bales – USDA

China's 2021 cotton output fell 3% to 5.73 million tonnes, said the National Bureau of Statistics.

COCUDAKL

Cocudakl yesterday settled down by -0.11% at 2762 as the chances of re-emergence of the Covid through the Omicron variant is said to be having a global impact. However, downside seen limited amid tight supplies owing to higher input costs with rising global demand. The global cotton balance sheets for 2021/22 include higher production and consumption, and slightly lower ending stocks. The projected global consumption is up 700,000 bales. The world production forecast is 1.5 million bales higher as gains for Brazil, Australia, Pakistan, and the United States more than offset a 200,000- bale decline in Greece following unusually heavy October rainfall. World ending stocks are projected at 86.9 million bales, 200,000 bales lower than in October, and 2.4 million bales lower than in 2020/21. The broader-based view for cotton is therefore positive from a pricing perspective, which implies that cotton cake prices shall tend to remain in an upward trend in forthcoming weeks. Dairy prices rose at the global auction, surpassing their March peak to touch a fresh seven-year high, as tight milk supply underpins demand for New Zealand’s biggest export commodity. The Global Dairy Trade price index increased 1.4 per cent at the latest auction, to touch its highest level since March 2014. The index has been on a march higher since August. In Akola spot market, Cocudakl dropped by -21.25 Rupees to end at 2800 Rupees per 100 kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -0.72% to settled at 73070 while prices down -3 rupees, now Cocudakl is getting support at 2746 and below same could see a test of 2731 levels, and resistance is now likely to be seen at 2773, a move above could see prices testing 2785.

Technical Chart

Trading Range

Cocudakl trading range for the day is 2731-2785.

Cocudakl prices dropped as the chances of re-emergence of the Covid through the Omicron variant is said to be having a global impact.

Projected 2021/22 world cotton ending stocks are 1.2 million bales lower, due to lower beginning stocks, lower production, and slightly higher consumption.

The U.S. cotton 2021/22 supply and demand forecasts are largely unchanged this month, with only a slight increase in production.

To Read Complete Report & Disclaimer Click Here

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer