Cotton Gains Amid Demand From the Domestic Textile Sector and Export Markets

Published 11-11-2021, 09:19 am
CT
-

Cotton yesterday settled up by 2.05% at 32910 bolstered by strong demand from both the domestic textile sector and export markets over the last year, and high global prices. China will start a new round of sales from its cotton reserves, with a total of 600,000 tonnes of imported and domestic cotton to be sold off in daily auctions, according to an official notice. It is the second batch of cotton to be released from reserves this year and is designed to better meet the demand for the fibre from spinning companies both production estimates for the 2021/22 crop year and ending stocks in the U.S. were largely unchanged at 18.20 million bales and 3.40 million bales respectively, the USDA said in its November World Agricultural Supply and Demand Estimates (WASDE) report.  
 
"The global cotton balance sheet for 2021/22 includes higher production and consumption, and slightly lower ending stocks," the USDA said. India’s cotton production in the 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. In spot market, Cotton gained by 160 Rupees to end at 32420 Rupees.  
 
Technically market is under fresh buying as the market has witnessed a gain in open interest by 0.81% to settled at 3253 while prices up 660 rupees, now Cotton is getting support at 32540 and below same could see a test of 32160 levels, and resistance is now likely to be seen at 33160, a move above could see prices testing 33400. 

Trading Ideas:
# Cotton trading range for the day is 32160-33400.
# Cotton gained bolstered by strong demand from both the domestic textile sector and export markets over the last year, and high global prices.
# China starts a new round of cotton sales to boost supply
# Both production estimates for the 2021/22 crop year and ending stocks were largely unchanged at 18.20 million bales and 3.40 million bales respectively
# In spot market, Cotton gained by 160 Rupees to end at 32420 Rupees.

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.