FOR PRIVATE CIRCULATION ONLY

29 April 2015
Domestic Futures

Highlights
Domestic cotton and futures closed in negative
territory mainly due to profit booking at higher
MCX cotton May contract closed in negative
territory on accumulation of short positions at
higher levels
NCDEX April Kapas contract closed tad higher on
short covering, the contract is nearing expiry and
hence activity is dull
Domestic demand from traders and mills slowed
down at higher levels
Supplies at the spot markets increased
marginally to 38000 as compared to 36500 bales
in previous session
Internationally ICE cotton futures closed in
positive territory however off the intraday highs
as selling pressure emerged at higher levels

Contract
MCX: Cotton
30-Apr-15
29-May-15
30-Jun-15
NCDEX : Kapas
30-Apr-15

Price Change in Volume in

Change in
%
Lots
OI in lots
OI
High
Low
Close Change
Price Quote per bales (170 kg)
28-Apr-15
16170 16230 16020
16140
-130
-0.8%
1190
1564
-616
16400 16490 16250
16390
-140
-0.8%
3321
7531
659
16600 16670 16490
16590
-170
-1.0%
742
2070
95
Price Quote per Maund (20 kg)
#N/A
#N/A
#N/A
815
821
811
820
2.0
0.2%
257
1372
-257
Open

Spot Markets
Spot
Kapas S-6 (Ahmd)
ICS 105 (CAI)
Cotlook A Index Forward
Total Arrival

Current
935
33,500
73.15
38,000

W. Afr. at Mill in south

ICS 105 at mill in south

36535
35802

Change
25
0
0.00
1500

Unit
per 20 Kg
per candy
cents per lb
Bales

-191
0

per Candy
per Candy

Import Parity
36727
35802

* W. African comes close to ICS 105 variety in Maharashtra 28 mm, 3.5-4.9 mic

Export Parity
Spot - Rajkot
Currency Rate
MCX
ACE

per candy
(356Kg)
33983
33450

per bale
(170 KG)
16260
16005

In Yuan
6.2035
16203
15970

In USD
63.0435
70.7
69.7

Previous
118,600
-

change
-

* Price in Yuan is all costs incl delivered in a China mill; price in USD is FOB

Stocks In Bales
Commodity
MCX(23rd April) physical
ACE (19 Nov) demat

Outlook

Previous
910
33500
73.15
36,500

Domestic cotton and kapas prices may trade

sideways amid positive bias during the session.

Current
118,600
-

In Process
700
-

International Futures
Open

High

Low

Close

Change

ICE Cotton USA

For the session, buying on dips could be ideal May-15

strategy. For the day May contract on MCX could Jul-15
seek support near 16323 per bale while Oct-15
ZCE Cotton China
resistance is seen near Rs.16723.

Cotton Daily

% chg

28-Apr-15

66.00

67.12

65.11

66.62

66.37

67.07

65.60

66.39

65.40

65.84

65.31

65.77

0.23
0.16
0.01

Nov-14

12625

12690

12600

12615

15

Jan-15

12740

12795

12740

12740

15

0.35%
0.24%
0.02%

15-Apr-15

Please See Disclaimer on the Last Page

0.12%
0.12%

Domestic Market:
Domestic cotton prices across the major trading centers eased mainly due to slow buying interest at higher levels.
Prices rose sharply since last week and hence fresh buying is not seen forthcoming at higher levels owing to sufficient
stocks in the hands of CCI.
CCI offered around 62,000 bales of cotton for e-Auction yesterday and has sold around 45,900 bales. The bid price
were increased between Rs 100-300/candy in most centers as buyers turned in great number to source cotton to
meet their near term demand. CCI has mostly procured good quality cotton, which has attracted buyers as supply in
the spot market is mostly average grade.

As per data compiled by the Commodities control, Cotton arrivals in the country were estimated up at 38,000 bales
on Tuesday as against 36,500 bales received on Monday. Arrivals in north India were recorded tad down at 1,000
bales compared to 1,200 bales on previous session. In central India (Gujarat, Maharashtra and Madhya Pradesh) total
arrivals were recorded higher at 26,200 bales from 23,300 bales in previous session. In South Indian states of Andhra
Pradesh, Telangana, Karnataka and Tamil Nadu, total arrivals were down at 11,800 from 12,000 bales on Monday.

Global Markets:
Internationally ICE cotton futures gained sharply on Tuesday, underpinned by a weaker dollar and gains across the
commodities markets, the prices closed off intraday highs and failed to sustain on selling emerging at higher levels.
July cotton contracts ended up by 0.16 cent on Tuesday, a 0.2 % gain, at 66.39 cents/ lb. It traded within a range of
65.60 to 67.07 cents a pound.
Cotton planting in north Xinjiang of China, which is delayed by 4-5 days due to previous heavy rains and strong storm,
has accelerated last week. Much warmer temperature and skies allowed sowing to move at faster pace.

Cotton Daily

Please See Disclaimer on the Last Page

Aurobinda Gayan- Vice President Research

aurobinda.gayan@kotakcommodities.com

Fundamental Team
Faiyaz Hudani- AVP Research

Oilseeds; Grains

faiyaz.hudani@kotakcommodities.com

Sudha Acharya-Sr. Research Analyst

Pulses; Spices; Cotton

sudha.acharya@kotakcommodities.com

Madhavi Mehta- Sr. Research Analyst

Bullion; Energy

madhavi.mehta@kotakcommodities.com

Priyanka Jhaveri- Sr. Research Analyst

Base Metals

priyanka.jhaveri@kotakcommodities.com

Technical Team
Dharmesh Bhatia- DVP Research

dharmesh.bhatia@kotakcommodities.com

Tapan Patel- Sr. Research Analyst

tapan.patel@kotakcommodities.com

Shabbir Kayyumi- Research Analyst

shabbir.kayyumi@kotakcommodities.com

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