Cocudakl trading range for the day is 2509-2715 - Kedia Advisory
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COTTON
Cotton yesterday settled up by 1.53% at 21940 as support seen after USDA in its annual outlook, said that the area under cotton could remain stagnant or drop two per cent from about 13 million hectares (mh) this season. However, the cotton sector is split over its view on the prospects for the fibre crop next crop year (July 2021-June 2022) with a section saying that the area under the crop might increase, while the other expressing pessimism over the prospects of a higher acreage. This is despite growers getting higher than minimum support price (MSP) for most part of the current season and States such as Telangana declaring their intention to bring more acreage under the fibre crop. “The area under cotton will increase next season since the kapas (raw cotton) rate is ruling at ₹6,500-6,600 a quintal. That is almost 15 per cent higher than the MSP,” said Cotton Association of India President Atul Ganatra. For this season, the Centre has fixed the MSP for medium staple cotton at ₹5,515 a quintal. “Chances of a higher acreage in cotton are bright as it is the most attractive cash crop,” said K Selvaraju, Secretary-General, Southern India Mills Association – a representative body of the textile industry in the southern region. In spot market, Cotton gained by 140 Rupees to end at 22020 Rupees. Technically market is under short covering as market has witnessed drop in open interest by -1.75% to settled at 7059 while prices up 330 rupees, now Cotton is getting support at 21700 and below same could see a test of 21460 levels, and resistance is now likely to be seen at 22080, a move above could see prices testing 22220
Trading Idea for the day
Cotton trading range for the day is 21460-22220.
Cotton prices gained as support seen after USDA said area may drop 2% as farmers may switch over to other crops.
However, the cotton sector is split over its view on the prospects for the fibre crop next crop year with a section saying that the area under the crop might increase
During the current season, area under cotton dropped to 12.96 mh from 13.37 mh last season, according to the CCPC.
Cocudakl
Cocudakl yesterday settled up by 3.13% at 2638 as supply of cottonseeds might become tight in the coming kharif season if farmers decide to expand the area under the fibre crop going by the high price that prevailed during the current season to September. Cottonseed production and quality were affected last year due to excessive rains in the key producing State of Telangana and some parts of Tamil Nadu. Due to continuous rains last year, there was lot of damage to seed production in Telangana and Tamil Nadu. Cotton sowing area in the State is expected to increase further in 2021-22 kharif in the backdrop of increase of cotton price in the open market during this season. Cotton price touched Rs 6,500 per quintal in the open market, while the Cotton Corporation of India (CCI) fixed the MSP of Rs 5,550 per quintal. At present, farmers in the State are sowing cotton in 15-lakh acres. It is expected to touch 18-lakh to 20-lakh acres in the kharif season. About 150 spinning mills in the State are generating 2-lakh jobs. The State government and Cotton Corporation of India are also in favour of increasing cotton sowing area in the State and making necessary arrangements to supply seeds and fertilisers to farmers. In Akola spot market, Cocudakl gained by 30.65 Rupees to end at 2670.95 Rupees per 100 kgs. Technically market is under short covering as market has witnessed drop in open interest by -22.23% to settled at 29710 while prices up 80 rupees, now Cocudakl is getting support at 2574 and below same could see a test of 2509 levels, and resistance is now likely to be seen at 2677, a move above could see prices testing 2715.
Trading Idea for the day
Cocudakl trading range for the day is 2509-2715.
Cocudakl prices gained as supply of cottonseeds might become tight in the coming kharif season
Maharashtra to write to Centre, urge rollback of cotton seed price hike
Cotton sowing area in the State is expected to increase further in 2021-22 kharif in the backdrop of increase of cotton price in the open market
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