Cotton gains as crop in North India is under the threat of pink bollworm attacks

Cotton candy yesterday settled up by 0.53% at 60760 as the cotton crop in North India is under the threat of pink bollworm (PBW) attacks and the intensity of pest attacks is seen higher this year compared to the last two years. While PBW was observed in cotton only at the end of the season in North during Kharif 2022-23, this year the pest has surfaced at the start of the season, which is a big threat for the farmers. as 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. The state’s farmers have successfully planted cotton across an extensive 26.64 lakh hectare area, showcasing a stark contrast to the declining trend witnessed in other major cotton-producing states. Gujarat, known as India’s largest cotton producer, has accomplished cotton sowing in a total of 26,64,565 hectares (ha) as of July 31, according to official data from the state Directorate of Agriculture. In Rajkot, a major spot market, the price ended at 29267.85 Rupees gained by 0.05 per cent. 

Technically market is under fresh buying as the market has witnessed a gain in open interest by 0.52% to settle at 383 while prices are up 320 rupees, now Cottoncandy is getting support at 60280 and below the same could see a test of 59790 levels, and resistance is now likely to be seen at 61080, a move above could see prices testing 61390.