Cotton fell as Gujarat sowing grows by nearly 43% with 60,908 hectares till date

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Cotton fell as Gujarat sowing grows by nearly 43% with 60,908 hectares till date
Credit: © Reuters.

Cotton yesterday settled down by -0.73% at 59840 as Cotton sowing in Gujarat, grows by nearly 43% with 60,908 hectares against sown area of 2022 which was 42,516 hectares as on 05-06-2023. Farmers, who were holding the crop expecting prices to return to last year's record-high levels, have started selling their produce. The daily arrival of cotton in the markets has increased fivefold to 100,000 bales (each weighing 170 kg) from the historical average of 20,000 bales a day in May.

India's cotton exports are set to fall to their lowest level in 18 years in 2022/23 as production lagged behind domestic consumption for the second straight year, a leading trade body said. Lower exports from the world's biggest producer could support global prices. It could also lift domestic prices and weigh on margins of local textile companies. Exports could fall to 2 million bales in the current marketing year ending on Sept. 30, the lowest since 2004/05 and well below 4.3 million bales last year, Cotton Association of India (CAI) said in a statement. Production could fall to 29.84 million bales, down from the previous estimate of 30.3 million bales, the CAI said. Local consumption could also ease by 2.2% from a year ago to 31.1 million bales, it said. 

Technically market is under long liquidation as the market has witnessed a remain unchanged in open interest by 0% to settle at 491 while prices are down -440 rupees, now Cotton is getting support at 59580 and below same could see a test of 59320 levels, and resistance is now likely to be seen at 60100, a move above could see prices testing 60360.

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