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Published on 19/11/2019 9:59:22 AM | Source: Kedia Commodity Ltd

Cocudakl trading range for the day is 2086-2182 - Kedia Commodities

Posted in Commodities Reports| #Kedia Commodity Ltd #Commodity Tips

Cotton

Cotton on MCX settled down by -0.62% at 19170 due to improved sowing, higher imports and weak international prices. USDA lowered India's 2019-20 cotton crop to 300 bales (each bale of 480 pounds) down 5 lakh bales it projected in October due to adverse weather conditions in some states However, the crop is higher than 2018-19 when pest attack in Maharashtra and Telangana and erratic rains in Gujarat hit yield. USDA hiked India's 2019-20 cotton import numbers to 18 lakh bales from last month's estimates of 16 lakh bales. USDA lowered its domestic consumption to 245 lakh bales from its October estimates of 247.50 lakh bales. India's cotton sowing jumped to 127.67 lakh hectares until September 27 from 121.05 lakh hectares a year ago, showed agriculture ministry data. In its November report the USDA lowered its forecast for global cotton production in 2019-20 to 1,219.4 lakh bales. This month's report 2019-20 world cotton forecasts include lower production, lower ending stocks and higher world trade, said USDA. World production is reduced nearly 30 lakh bales, with reductions occurring primarily in the United States, Pakistan, India, and China. Technically market is under long liquidation as market has witnessed drop in open interest by - 4.57% to settled at 1356 while prices down -120 rupees, now Cotton is getting support at 19090 and below same could see a test of 19020 levels, and resistance is now likely to be seen at 19290, a move above could see prices testing 19420.

Trading Idea for the day

* Cotton trading range for the day is 19020-19420.

* Cotton prices dropped due to improved sowing, higher imports and weak international prices.

* However, the crop is higher than 2018-19 when pest attack in Maharashtra and Telangana and erratic rains in Gujarat hit yield.

* USDA hiked India's 2019-20 cotton import numbers to 18 lakh bales from last month's estimates of 16 lakh bales.

 

Cocudakl

Cocudakl on NCDEX settled down by -1.53% at 2128 as cotton prices come under pressure at the start of harvest, CCI has begun purchases of the fibre crop in Rajasthan and Punjab. However, CCI’s purchases are in small quantities as the moisture content in the cotton being brought into the market is very high. Farmers are being advised to let their cotton dry before they bring it to the market as CCI can only purchase fair average quality (FAQ) cotton with moisture content between 8 per cent to 12 per cent. A lower cotton crop last year had led to a flare-up in cottonseed prices. Cotton output had touched a decade low of 312 lakh bales (of 170 kg each). With farmers planting cotton on a larger area of 127 lakh hectares this year, output is set to rise. In the first advance estimates, the Agriculture Ministry pegged cotton output at 322.7 million bales. Currently, daily market arrivals are at around 40,000 bales in North India, while in Telangana they are at around 2000-3000 bales. In Maharashtra, the daily arrivals are at around 3,000-4,000 bales and in Karnataka around 1,000 bales, trade sources said. Arrivals are set to pick up by the end of October or early November. In Akola spot market, Cocudakl dropped by -33.35 Rupees to end at 2300 Rupees per 100 kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -3.04% to settled at 45880 while prices down -52 rupees, now Chana is getting support at 4446 and below same could see a test of 4425 levels, and resistance is now likely to be seen at 4504, a move above could see prices testing 4541.

Trading Idea for the day

* Cocudakl trading range for the day is 2086-2182.

* Cocudakl prices dropped as cotton prices come under pressure at the start of harvest

* CCI’s purchases are in small quantities as the moisture content in the cotton being brought into the market is very high.

* Currently, daily market arrivals are at around 40,000 bales in North India, while in Telangana they are at around 2000-3000 bales.

 

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