Cocudakl prices on NCDEX ended with positive note in the week after prices dropped initially - Kedia Advisory
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Highlights
* In the week, Cotton prices rallied over 5% due to the further possibility of higher exports.
* Support also seen as the daily arrivals have stopped, as farmers and stockists have less stock.
* Meanwhile, mill owners and exporters are hoping to restore their supplies for the next two-three months, while the new crop is more than three months away.
* According to the Third Advance Estimate released by the government, cotton production is estimated at 36.49 million bales higher by 4.59 million bales than the average cotton production. In the previous season 2019-20 cotton production was estimated at 36.07 million bales.
* The U.S. Department of Agriculture's (USDA) weekly export sales report showed net sales of 171,200 Running Bales for the 2020/2021 marking year, 59% higher than the prior week.
* CAI has revised higher Indian cotton export estimates for 2020-21 season at 65 lakh bales against 60 lakh bales projected till last month.
* Cotton production in Haryana is expected to decline by 27 percent to 1.8 million bales in 2020-21 (July-June) season due to yield loss.
* 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.
* 2021/22 global cottonseed production is projected at nearly 44 million tons, up 5 percent from the current year.
* Higher forecasts for the United States, Brazil, Australia, and Mali are partially offset by declines in China.
* U.S. production is forecast up 781,000 tons to nearly 5 million.
* Waning arrivals of raw cotton due to the fag end of the season and limited stocks of cottonseed with ginners has led to a supply crunch in the market.
Cotton
Chart Reading:
Cotton prices on MCX traded with a positive note in the week. Prices are on the verge of breakout of the Ascending Triangle Chart Pattern Upper Channel. Prices sustaining above the same may lead prices towards 24000 level (100% Fib. Level) and above same next resistance comes at 26470 (127.20% Fib. Level). This view is valid till prices hold above 22000 level (50DMA)
Cocudakl
Cocudakl prices on NCDEX ended with positive note in the week after prices dropped initially. Prices are trading above 50 day moving average (coming at 2540 level). Prices sustaining above same may lead prices towards 2850 level to 2950 level. This view is valid till prices hold above 2470 level (38.20% Fib Level)
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