Agri Picks Report January 12, 2024: Geojit

commodities

Geojit's report on Agri Picks

The Cotton Association of India has estimated the country's cotton output in 2023-24 (Oct-Sep) at 29.4 mln bales (1 bale = 170 kg), unchanged from last month's projection, according to a release. The estimated cotton production in the current year is 8% lower than the 31.9 mln bales produced last year, the lowest output in 15 years, owing to a drop in acreage and El Ninoinduced dry spells in Aug-Sep, according to the association. The association updates its estimates almost every month, based on information received from members of associations in 11 cotton-growing states and other trade sources. Production of cotton in the north zone, which comprises Punjab, Haryana, and Rajasthan, is estimated at 4.2 mln bales, down 100,000 bales from last year. As of Dec 31, 2.8 mln bales of cotton had been produced in this zone. The estimate for the central zone, which comprises Gujarat, Maharashtra, and Madhya Pradesh, is also down at 17.9 mln bales from 19.5 mln bales last year. As of Dec 31, 5.7 mln bales of cotton had been produced in this zone. The estimate for the south zone is also seen lower at 6.7 mln bales from 7.5 mln bales last year. As of Dec 31, 3.09 mln bales of cotton were produced in this zone. Other states account for the rest of the output. The opening stock for the season starting October was estimated at 2.9 mln bales, the association said. The total supply of cotton for the 2023-24 season is estimated at 34.5 mln bales, down from 35.5 mln bales a year ago. The association has estimated imports in 2023-24 at 2.2 mln bales, higher than the 1.25 mln bales imported in 2022- 23. Additionally, total supply till the end of Dec 2023 is estimated at 14.9 mln bales. The estimated cotton supply for 2023-24 consists of the opening stock of 2.9 mln bales, cotton output for the season estimated at 29.4 mln bales, and imports for the season estimated at 2.2 mln bales. The association has estimated the domestic consumption, surplus available, and exports at 31.1 mln bales, 3.4 mln bales, and 1.4 mln bales, respectively, the same as the previous month's estimates. Until Dec 31 the consumption is estimated at 8.1 mln bales. The National Commodity and Derivatives Exchange Ltd has removed the 2% additional surveillance margin on all turmeric contracts effective from Thursday, it said in a circular. The exchange has reintroduced the additional surveillance margin of 2.5% on jeera and jeera mini contracts effective from Thursday, it said in another circular. This change in the additional margin will be applicable to all running contracts and yet-to-be launched jeera contracts till Feb 1. On Tuesday, the exchange had cut the 2% surveillance margin on jeera contracts. The increased volatility in jeera prices has triggered the reintroduction of the margin, the exchange said.

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