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Cotton

Cotton yesterday settled down by -0.96% at 48590 as 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 Gujarat Cotton sowing grows by nearly 13% with 2,528,354.00 hectares against sown area of 2021 which was 2,240,765.00 hectares as of now. 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, 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. 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 spot market, Cotton gained by 680 Rupees to end at 46370 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -3.11% to settled at 1091 while prices down -470 rupees, now Cotton is getting support at 48110 and below same could see a test of 47630 levels, and resistance is now likely to be seen at 49160, a move above could see prices testing 49730.

Trading Idea for the day

Cotton trading range for the day is 47630-49730

Cotton dropped as India’s Cotton sowing gained by nearly 5.34% to 117.65 lakh hectares in 2022

In Gujarat Cotton sowing grows by nearly 13% with 2,528,354.00 hectares

Speculators cut net long position by 3,020 contracts to 7,083 in week to Aug. 2, data from the CFTC showed.

Cocudakl

Cocudakl yesterday settled up by 3.65% at 2781 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 2103.35 Rupees to end at 2848.15 Rupees per 100 kgs.Technically market is under fresh buying as market has witnessed gain in open interest by 5.87% to settled at 41850 while prices up 98 rupees, now Cocudakl is getting support at 2696 and below same could see a test of 2611 levels, and resistance is now likely to be seen at 2828, a move above could see prices testing 2875.

Trading Idea for the day

Cocudakl trading range for the day is 2611-2875.

Cocudakl prices seen supported 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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