IGI Logo

COTTON

Cotton yesterday settled up by 1.55% at 32820 in anticipation of a possible fall in production, and the remaining cotton stock is also low, while import demand from China remains high. China will start a new round of sales from its cotton reserves, with a total 600,000 tonnes of imported and domestic cotton to be sold off in daily auctions, according to an official notice. It is the second batch of cotton to be released from reserves this year and is designed to better meet demand for the fibre from spinning companies. Both production estimates for the 2021/22 crop year and ending stocks in the U.S. were largely unchanged at 18.20 million bales and 3.40 million bales respectively, the USDA said in its November World Agricultural Supply and Demand Estimates (WASDE) report. India’s cotton production in 2021-22 season is likely to be 360.13 lakh bales of 170 kg each (equivalent to 382.64 lakh running bales of 160 kg each), which is more by 7.13 lakh bales than the previous season’s crop of 353 lakh bales, the Cotton Association of India (CAI) has said in its first estimate for the new season beginning October 1, 2021. In spot market, Cotton gained by 130 Rupees to end at 31890 Rupees.Technically market is under fresh buying as market has witnessed gain in open interest by 5.32% to settled at 4888 while prices up 500 rupees, now Cotton is getting support at 32390 and below same could see a test of 31970 levels, and resistance is now likely to be seen at 33060, a move above could see prices testing 33310.

Technical Chart

Trading Range

Cotton trading range for the day is 31970-33310.

Cotton gained in anticipation of a possible fall in production

However upside seen limited as selling pressure intensified after demand from China eased.

China will start a new round of sales from its cotton reserves, with a total 600,000 tonnes of imported and domestic cotton to be sold off in daily auctions

COCUDAKL

Cocudakl yesterday settled up by 3.83% at 2714 due to increase in demand after Corona. Support also seen 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 gained by 46.65 Rupees to end at 2696.65 Rupees per 100 kgs.Technically market is under fresh buying as market has witnessed gain in open interest by 11.68% to settled at 48590 while prices up 100 rupees, now Cocudakl is getting support at 2636 and below same could see a test of 2559 levels, and resistance is now likely to be seen at 2754, a move above could see prices testing 2795.

Technical Chart

Trading Range

Cocudakl trading range for the day is 2559-2795.

Cocudakl prices remained supported amid increase in demand after Corona.

Support also seen 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

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