01-01-1970 12:00 AM | Source: Kedia Advisory
Cotton trading range for the day is 34240-35320 - Kedia Advisory
News By Tags | #473 #5839

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Cotton

Cotton yesterday settled up by 0.26% at 34810 as U.S. export data showing solid sales of the natural fiber, with an elevated dollar preventing any large gains. India’s Cotton sowing gained by nearly 7.34% to 126.66 lakh hectares in 2022 against an area sown of 118 lakh hectares in 2021. Cotton crops, remain under threat due to adverse weather conditions and pest attacks in major growing regions. India’s cotton output for the season 2022-23 is likely to touch 375 lakh bales (each of 170 kg), given no climatic adversities affect the crop during October, sources said. India’s Cotton sowing gained by nearly 7.34% to 126.66 lakh hectares in 2022 against an area sown of 118 lakh hectares in 2021.Atul Ganatra, President, Cotton Association of India (CAI), stated that the cotton crop condition in India was "very good and if everything goes well, we are expecting 350 lakh bales +/– 25 lakh bales." In its monthly supply-demand report, the 2022/23 U.S. cotton projections include higher beginning stocks, production, exports and ending stocks this month, the USDA's report said. Additionally, the 2022/23 world cotton projections include higher production and ending stocks relative to last month, and lower consumption. In recent time, the heavy rainfalls and pest attacks are affecting the cotton crop. In the northern states of Punjab, Haryana, and Rajasthan cotton crop has been affected due to pink bollworm infestation. In spot market, Cotton dropped by -90 Rupees to end at 40380 Rupees.Technically market is under short covering as the market has witnessed a drop in open interest by -0.39% to settle at 776 while prices are up 90 rupees, now Cotton is getting support at 34520 and below same could see a test of 34240 levels, and resistance is now likely to be seen at 35060, a move above could see prices testing 35320

Trading Idea for the day

Cotton trading range for the day is 34240-35320. Cocudakl trading range for the day is 2286-2404.

Cotton gains as U.S. export data showing solid sales of the natural fiber, with an elevated dollar preventing any large gains.

India’s cotton output for the season 2022-23 is likely to touch 375 lakh bales

Cotton area is estimated at 126 lakh hectares till September 2 — up 8-9 per cent from 117 lakh hectares last year.

Cocudakl

Cocudakl yesterday settled up by 0.6% at 2354 amid rising demand from cattlefeed makers and increasing consumption from Mill.Dairy farmers in Haryana take a hit amid lumpy skin disease. The country's milk production is expected to jump three-fold to 628 million tonnes also the demand for milk is expected to rise to 517 million tonnes in the next 25 years. Cotton crops remain under threat due to adverse weather conditions and pest attacks in major growing regions. Farmers in Pakistan stranded by unprecedented floods are running low on feed for their cattle. Some support seen last week as available stock is estimated to be very limited, the quality of which is also very weak. Support also seen after reports that there is a forecast of damage due to heavy rains after sowing of cotton in Vidarbha and Khandesh parts of Maharashtra. Sporadic arrivals of new cotton have already started in Haryana and Punjab, while the arrival of new cotton will start in Khandesh at the end of August and in Madhya Pradesh in September. All India Mandi arrivals of Kapas fell by around 82% on M-o-M basis; they were also lower by around 19% on Y-o-Y basis. Gujarat is a major producer of cotton across the country and reports of increase in sowing of cotton by at least 20% in Gujarat are coming. In Akola spot market, Cocudakl gained by 58.65 Rupees to end at 2824.15 Rupees per 100 kgs.Technically market is under fresh buying as the market has witnessed a gain in open interest by 5.52% to settle at 31150 while prices are up 14 rupees, now Cocudakl is getting support at 2320 and below same could see a test of 2286 levels, and resistance is now likely to be seen at 2379, a move above could see prices testing 2404.

Trading Idea for the day

Cotton trading range for the day is 34240-35320. Cocudakl trading range for the day is 2286-2404.

Cocudakl rose amid rising demand from cattle-feed makers and increasing consumption from Mill.

Some support seen last week as available stock is estimated to be very limited, the quality of which is also very weak.

Farmers in Pakistan stranded by unprecedented floods are running low on feed for their cattle.

 

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