Now MCX Cotton is getting support at 21180 and below same could see a test of 21100 levels, and resistance is now likely to be seen at 21330, a move above could see prices testing 21400.
Cotton yesterday settled down by 0.47% at 21260 as the closing stock is likely to be one of the record in recent years at 113.5 lakh bales.
This will be higher by about six lakh bales from the closing stock of last year. The higher inventory is partially attributed to reduced estimated exports, but largely it is due to the carryover burden from the previous year, i.e. 107.5 lakh bales.
With the removal of lockdown, the cotton business is slowly gaining momentum. Its demand has also increased, so now the spinning mills have started operating at 90 to 95% of their total capacity. In view of this, it is expected that the export of cotton this year will be more than the 5 million bales of the previous season.
Cotton growers in Punjab are reaping the benefits of the progressive policies that allow them to sell their produce to anyone of their choice anywhere in the country.
Punjab cotton growers are now being offered prices far higher than the minimum support prices (MSP) of Rs 5,515 a quintal fixed by the Union government for this season (July 2020-June 2021) by private traders.
United States has banned entry of cotton products from China's Xinjiang region amid allegations that detainee or prison labour from Uyghurs went into making them. In spot market, Cotton gained by 140 Rupees to end at 21010 Rupees.
--Cotton trading range for the day is 21100-21400.
--Cotton prices fell as CAI sees higher cotton carryover stock at 113 lakh bales
--Punjab cotton growers are now being offered prices far higher than the MSP by private traders — as high as Rs 5,900 a quintal
--India's cotton exports can grow up to 7 million bales in the year 2020-21 compared to 2019-20
--In spot market, Cotton gained by 140 Rupees to end at 21010 Rupees.