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Cotton

Cotton yesterday settled up by 2.25% at 43570 as support seen after reports China will start purchasing cotton for its state reserves from July 13. The state stockpiler will buy between 300,000 and 500,000 tonnes in total, the website said, as part of annual rotation of its stocks. Cotton sowing dropped by nearly -0.18% to 84.6 lakh hectares in 2022 against an area sown of 84.75 lakh hectares in 2021. Cotton sowing in Gujarat fall by nearly -6% with 1,556,683 hectares against sown area of 2021 which was 1,650,463 hectares. Cotton sowing in Rajasthan witnessed a gain of 8.11% with 598.14 thousand hectares as against 553.26 thousand hectares on the same day last year. India has extended deadline to import cotton without paying import taxes until Oct. 31 from the earlier cut-off date of Sept. 30, the government said in a notification, as the sowing of the fibre crop delayed in some regions due to patchy monsoon rainfall. The world's biggest producer of the fibre had allowed duty free imports in April after local prices jumped to a record high because of a drop in the production and following rally in global prices In spot market, Cotton dropped by -370 Rupees to end at 42370 Rupees.Technically market is under short covering as market has witnessed drop in open interest by -5.6% to settled at 1483 while prices up 960 rupees, now Cotton is getting support at 42490 and below same could see a test of 41400 levels, and resistance is now likely to be seen at 44490, a move above could see prices testing 45400.

Trading Idea for the day

Cotton trading range for the day is 41400-45400.

Cotton prices rose as support seen after reports China to buy cotton for state reserves from July 13

India's Cotton sowing dropped by nearly -0.18% to 84.6 lakh hectares in 2022 against an area sown of 84.75 lakh hectares in 2021

Telangana Cotton sowing fall by nearly -6.12% to 31,86,635 hectares in 2022.

Cocudakl

Cocudakl yesterday settled up by 2.23% at 2562 on low level buying after prices dropped as demand for animal feed commodities has become very weak due to the increase in availability of green fodder. Pressure also seen as price of other cattle feeds being lower than the price of cottonseed oilcake, all the consumers have created a mindset to shift towards other cattle feeds. Global cottonseed production is projected at 44.1 million tons, up 3 percent, with gains in China, India, Turkey, and Uzbekistan. Cottonseed exports are forecast down nearly 2 percent, while crush is projected to grow 3 percent. Cottonseed oil trade is forecast to decline on lower export projections for the United States due to higher domestic demand. The new season for cotton is expected to be good. Retailer expects slight decline in dairy demand as supply uncertainties remain. Further pressure seen as Dairy farmers have demanded a hike in milk price in the midst of rising production cost, and the government has convened a meeting of farmers and farmers’ representatives in Thiruvananthapuram on May 10. Milk procurement prices have been rising, prompting higher revenues for dairy companies but also leading to pressure on margins in FY2023-24, according to a report. The new season for cotton is expected to be good for farmers as the market price of the fiber is currently more than MSP. In Akola spot market, Cocudakl gained by 2.25 Rupees to end at 2702.55 Rupees per 100 kgs.Technically market is under fresh buying as market has witnessed gain in open interest by 11.84% to settled at 51380 while prices up 56 rupees, now Cocudakl is getting support at 2514 and below same could see a test of 2465 levels, and resistance is now likely to be seen at 2593, a move above could see prices testing 2623.

Trading Idea for the day

Cocudakl trading range for the day is 2465-2623

Cocudakl gained on low level buying after prices dropped as demand for animal feed commodities has become very weak

Global cottonseed production is projected at 44.1 million tons, up 3 percent

Cottonseed exports are forecast down nearly 2 percent, while crush is projected to grow 3 percent.

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