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Cotton

Cotton yesterday settled up by 1.05% at 47310 as crop has been damaged as excessive rains continue to hit parts of the Maharashtra State. According to government sources, if rains continue to hit the State for the next few days more crop is likely to get damaged. The heavy rainfall has caused heavy losses to the cotton crop in Narnaund, Baas, Hansi and Barwala regions of the Hisar. The Agriculture Department report has revealed that 49,212 acres of cotton crop has suffered above 26 per cent losses, of which the crop on 18,700 acres has reported damage above 50 per cent. In Rajasthan, Cotton sowing witnessed a gain of 7.99% with 647.1 thousand hectares as against 599.22 thousand hectares on the same day last year. However downside seen limited CAI reports at least 10% higher sowing is expected compared to previous kharif season’s 12 million hectares. Looking at the current trend, cotton sowing in Maharashtra is expected to cross 4.2 million hectares. In Gujarat, it would be around 2.7 million hectares. The cotton acreage in north will be around 1.5 million hectares and the same for southern states is likely to remain at around 3.5-4.0 million hectare. Reports of severe damage to crop due to heavy rains in Gujarat in the last 4 days, most of the sowings have failed. In spot market, Cotton remains unchanged at by 0 Rupees to end at 44600 Rupees.Technically market is under short covering as market has witnessed drop in open interest by -1.58% to settled at 1185 while prices up 490 rupees, now Cotton is getting support at 46850 and below same could see a test of 46400 levels, and resistance is now likely to be seen at 47650, a move above could see prices testing 48000.

Trading Idea for the day

* Cotton trading range for the day is 46400-48000

* Cotton gained as crop has been damaged as excessive rains continue to hit parts of the Maharashtra State.

* India’s Cotton sowing gained by nearly 5.34% to 117.65 lakh hectares in 2022 against an area sown of 111.69 lakh hectares in     2021.

* In Rajasthan, Cotton sowing witnessed a gain of 7.99% with 647.1 thousand hectares as against 599.22 thousand hectares in 2021

Cocudakl

Cocudakl yesterday settled up by 2.58% at 2704 as available stock is estimated to be very limited, the quality of which is also very weak. Support also seen after reports that there is a forecast of damage due to heavy rains after sowing of cotton in Vidarbha and Khandesh parts of Maharashtra. Sporadic arrivals of new cotton have already started in Haryana and Punjab, while the arrival of new cotton will start in Khandesh at the end of August and in Madhya Pradesh in September. All India Mandi arrivals of Kapas fell by around 82% on M-o-M basis; they were also lower by around 19% on Y-o-Y basis. Gujarat is a major producer of cotton across the country and reports of increase in sowing of cotton by at least 20% in Gujarat are coming. As per CAI, total cotton supply till end of the cotton season 2021-22 is estimated at 402.16 lakh bales of 170 kg each, lower by around 18% as compared to 488 lakh bales last year. Cocudakl’s stock in NCDEX warehouse reduced from 21 lakh sacks to 7.50 lakh sacks. 60 to 70% of Cocudakl’s stock in Gujarat is estimated to be weak quality stock. At present, only 15% of crushing mills are operational in Gujarat as the demand Khali has come down drastically due to high prices and availability of grass fodder. In Akola spot market, Cocudakl gained by 2.85 Rupees to end at 2792.45 Rupees per 100 kgs.Technically market is under fresh buying as market has witnessed gain in open interest by 10.24% to settled at 29510 while prices up 68 rupees, now Cocudakl is getting support at 2627 and below same could see a test of 2551 levels, and resistance is now likely to be seen at 2748, a move above could see prices testing 2793.

Trading Idea for the day

* Cocudakl trading range for the day is 2551-2793

* Cocudakl prices gained as available stock is estimated to be very limited, the quality of which is also very weak.

* Support also seen after reports that there is a forecast of damage due to heavy rains after sowing of cotton in Vidarbha and   Khandesh

* Global cottonseed production is projected at 44.1 million tons, up 3 percent

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