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COTTON

Cotton yesterday settled down by -3.27% at 34880 after update textile ministry to meet regarding removal of 10% import duty. Farmers held on to their produce with the quality of arrivals being affected by heavy rains during SeptemberNovember last year. Cotton has been ruling at least 70 per cent higher than last year since the beginning of this season on October 1 in line with the global trend. Globally, cotton prices are 45 per cent higher than last year on firm demand and tight supplies arising out of shipping woes. Inventories at the Intercontinental Exchange (ICE) monitored in depots monitored by the US are down 99 per cent this year. The Committee on Cotton Production and Consumption, a body set up by the Centre comprising all stakeholders in the country, has projected the output at 362.18 lakh bales. It has projected the consumption at 338 lakh bales. The trade is yet to come to the conclusion of actual crop estimates. Picking has been completed in Madhya Pradesh, Punjab, Haryana and Rajasthan, while it is in progress in other growing States. Though the record prices have cheered up farmers, poor productivity on untimely rains, cultivation of unauthorised seeds and pink bollworm attack in Telangana and parts of Maharashtra have lowered their hopes. In spot market, Cotton gained by 610 Rupees to end at 35530 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -10.75% to settled at 6319 while prices down -1180 rupees, now Cotton is getting support at 34210 and below same could see a test of 33540 levels, and resistance is now likely to be seen at 35970, a move above could see prices testing 37060.

Trading Idea for the day

Cotton trading range for the day is 33540-37060.

Cotton prices dropped after update textile ministry to meet regarding removal of 10% import duty.

Cotton has been ruling at least 70 per cent higher than last year since the beginning of this season on October 1 in line with the global trend.

Inventories at the ICE monitored in depots monitored by the US are down 99 per cent this year.

COCUDAKL

Cocudakl yesterday settled down by -0.21% at 3286 on profit booking as the chances of re-emergence of the Covid through the Omicron variant is said to be having a global impact. In recent session prices rallied after rains and hailstorm in few parts of Maharashtra. amid tight supplies owing to higher input costs with rising global demand. However, upside seen limited 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 sevenyear 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. In Akola spot market, Cocudakl gained by 86.45 Rupees to end at 3361.45 Rupees per 100 kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -9.73% to settled at 39260 while prices down -7 rupees, now Cocudakl is getting support at 3239 and below same could see a test of 3192 levels, and resistance is now likely to be seen at 3338, a move above could see prices testing 3390.

Trading Idea for the day

Cocudakl trading range for the day is 3192-3390

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

In recent session prices rallied after rains and hailstorm in few parts of Maharashtra. 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

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