Cotton yesterday closed 1.93% higher at 57100 as Haryana records lowest cotton yield in two decades in 2022-23 even as the state has almost completely converted to genetically modified Bt cotton, which is being sold in North Was introduced in India as an insect-repellent. Yield enhancing variety in 2005-06. According to survey data from the China Cotton Storage Information Center, China's total cotton planting area fell by 10.3% over the previous year. The survey data shows that the country's total cotton planting area till May was 41.40 million mu, which is equivalent to 2.77 million hectares. Acreage fell 8.0% to 36.16 million, equivalent to 2.42 million hectares, in the northwestern Xinjiang region, China's main cotton-producing region.
In the global 2023/24 cotton balance sheet, higher opening stocks and production exceed consumption growth, and ending stocks are estimated at 92.8 million, 515,000 bales higher than in May. World cotton production this month is estimated at 1.0 million bales higher as larger crops in the United States and Pakistan offset a shortfall of 500,000 bales for China. Consumption is higher at 765,000 bales, with increases in Vietnam, Pakistan, Bangladesh, Indonesia and Turkey. World trade is also projected to increase to 900,000 bales due to increased US exports and Chinese imports.
Technically market is under short covering as market has seen -1.5% fall in open interest and it closed at 329 while prices are up 1080, now cotton is taking support at 56540 and below this A test of 55970 level can be seen, and resistance is now likely to be seen at 57540, on the upside the price could test 57970.
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Team Sis
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