Cotton candy yesterday settled up by 0.17% at 59180 amid fears of lower production. India’s Cotton sowing dropped by nearly -1.82% to 122.56 lakh hectares in 2023 against an area sown of 124.82 lakh hectares in 2022. Cotton arrivals so far during the current season that started in October last year have crossed 318 lakh bales according to data available from the Cotton Corporation of India, said the Southern India Mills’ Association (SIMA). The SIMA chairman said that there were reports that the cotton crop size this season will be 311.18 lakh bales. This is probably the ginning production, he said.
Arrivals in Punjab have been recorded at almost one-third of the previous year, 2021-22. In Punjab, the arrival of cotton in the 2022-23 marketing season has been recorded at 8.7 lakh quintals to date this year, while it was 28.89 lakh quintals for the entire 2021-22 season. USDA weekly export sales report showed net sales of 277,700 running bales of cotton for 2023/2024, with increases primarily for China. During this Kharif season, cotton cultivation in Gujarat has achieved a remarkable milestone, surpassing the records of the past eight years. In Rajkot, a major spot market, the price ended at 28697.8 Rupees dropping by -0.24 percent.
Technically market is under fresh buying as the market has witnessed a gain in open interest by 17.02% to settle at 55 while prices are up 100 rupees, now Cottoncandy is getting support at 59080 and below the same and could see a test of 58970 levels, and resistance is now likely to be seen at 59300, a move above could see prices testing 59410.
Source; Investing.com
