Cocudakl trading range for the day is 2244-2308 - Kedia Advisory
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Cotton
Cotton yesterday settled up by 0.03% at 32400 on short covering after prices dropped as Cotton output is expected to rebound from last years’ experience of unseasonal rain affecting the crop. Production this year is seen at 341.9 lakh bales (170 kg) against 312.03 lakh bales last year. Record prices for cotton, topping ?1 lakh a candy (356 kg) have helped increase the area under the fibre crop by 7.5 per cent this year. Pakistan’s cotton production has shrunk 19% to 2.19 million bales till September 15, 2022 in the current season mainly due to the devastation caused by heavy rainfall and flash floods nationwide. 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 - 800 Rupees to end at 35590 Rupees.Technically market is under fresh buying as the market has witnessed a gain in open interest by 6.4% to settle at 931 while prices are up 10 rupees, now Cotton is getting support at 32150 and below same could see a test of 31890 levels, and resistance is now likely to be seen at 32700, a move above could see prices testing 32990.
Trading Idea for the day
Cotton trading range for the day is 31890-32990.
Cotton gained on short covering after prices dropped as traders weighed prospects of lower demand and higher supplies.
Growing slowdown worries due to faster rate hikes and economic uncertainty are set to put prices under pressure.
India’s Cotton sowing gained by nearly 7.45% to 127.39 lakh hectares in 2022 against an area sown of 118.56 lakh hectares in 2021.
Cocudakl
Cocudakl yesterday settled down by -0.39% at 2274 due to surging selling pressure at physical market. Stockiest are offloading their stocks in wake of bumper production outlook of cotton. Reports of rising area under cotton and increased availability of green fodder kept cotton seed oil cake prices down. However 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. As per CAI, total cotton supply till end of the cotton season 2021-22 is estimated at 402.16 lakh bales of 170 kg each, lower by around 18% as compared to 488 lakh bales last year. Cocudakl’s stock in NCDEX warehouse reduced from 21 lakh sacks to 7.50 lakh sacks. 60 to 70% of Cocudakl’s stock in Gujarat is estimated to be weak quality stock. In Akola spot market, Cocudakl dropped by -6.45 Rupees to end at 2712.55 Rupees per 100 kgs.Technically market is under fresh selling as the market has witnessed a gain in open interest by 0.87% to settle at 33590 while prices are down -9 rupees, now Cocudakl is getting support at 2259 and below same could see a test of 2244 levels, and resistance is now likely to be seen at 2291, a move above could see prices testing 2308.
Trading Idea for the day
Cocudakl trading range for the day is 2244-2308
Cocudakl settled down due to surging selling pressure at physical market.
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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