Procurement operations of seed cotton (Kapas) under MSP are going on smoothly in the States of Punjab, Haryana, Rajasthan, Madhya Pradesh, Maharashtra, Gujarat, Telangana, Andhra Pradesh, Odisha and Karnataka. Till 24.01.2021 a quantity of 87,96,717 cotton bales valuing Rs.25,691.35 Crore has been procured benefitting 18,02,025 farmers.
Recovery rallies in the grains and energies allowed the cotton market to stay positive all day. However, cotton is mainly being supported by its own supply-demand situation, which traders believe to be bullish. Still, having outside positive market action is never negative.
Market Movement from 18th Jan 2021 to 23th Jan 2021
• This week started with bullish trend due to weaker U.S. dollar. With new uptrend NY March crossed contract high of 83 cents. On Friday market lost around one cent with selloff in grain markets. ICE March future closed at 81.56 cent with 86 points weekly gain.
• Again U.S. Export Sales was decent above 3 lakh bales. Despite cancellation of 31,000 bales from China demand accrued from other destinations. Shipment also was good with China leading.
COTTON MARKET FINISHES WEEK HIGHER BUT HINDERED BY WEAKNESS IN COMPETING CROPS
January 24, 2021
The ICE Mar cotton contract gained 86 points for the week ending Jan 22, finishing at 81.56 as the Mar – May switch weakened to (110). It is worth noting that the Mar contract managed to breach the 83.00 level on the week, marking the market’s highest nearby intraday high in more than two years.