Technically Cotton market is under long liquidation as market has witnessed drop in open interest by 0.24% to settled at 3364 while prices down 410 rupees
Now MCX Cotton is getting support at 33150 and below same could see a test of 32930 levels, and resistance is now likely to be seen at 33720, a move above could see prices testing 34070.
Cotton yesterday settled down by 1.21% at 33380 on profit booking as 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.
As per report, the loose cotton production figures for the 2020-21 crop year were less by 25 per cent at 5.45 lakh bales of 170 kg each, since the said crop year was a pandemic year.
The preliminary yearly Balance Sheet projected by the CAI Crop Committee estimates total cotton supply till end of the 2021-22 Season i.e. upto September 30, 2022 at 445.13 lakh bales of 170 kg each, which consists of the opening stock of 75.00 lakh bales at the beginning of the season, crop for the season estimated at 360.13 lakh bales, and imports for the season estimated at the same level as in the last year i.e. at 10 lakh bales.
Cotton exports could be lower at 50 lakh bales this season (October 2021-September 2022) compared with 75-80 lakh bales last season. In spot market, Cotton gained by 320 Rupees to end at 32760 Rupees.
–Cotton trading range for the day is 32930-34070.
–Cotton prices dropped on profit booking as India’s cotton output to increase by 7.13 lakh bales this season
–Cotton exports could be lower at 50 lakh bales this season compared with 75-80 lakh bales last season.
–SIMA said cotton production this year is estimated to be 360 lakh bales
–In spot market, Cotton gained by 320 Rupees to end at 32760 Rupees.
Courtesy: Kedia Commodities
Source: Comodity Online