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Cotton

Cotton yesterday settled down by -1.91% at 42730 on profit booking as growing recessionary fears raised prospects of lower demand. The United States Department of Agriculture's report showed that 37% of the cotton crop was in a good-to-excellent condition in the week ending June 26. That compares with 52% for the same period a year ago. Meanwhile, heavy rain will be possible along portions of the Texas coast later this week, the U.S. National Hurricane Center said. Speculators cut net long position in cotton futures by 1,485 contracts to 42,786 in the week to June 21, data from the Commodity Futures Trading Commission showed. Cotton sowing fall nearly 14.76% with 31.83 lakh hectares of area sown against area of 37.37 lakh hectares in 2021. There is a rush among farmers in Gujarat for sowing cotton in anticipation of good returns. Kharif cotton sowing for the season in Gujarat is likely to increase by at least 15% compared to the previous season amid a rush to sow the crop well ahead of its schedule. Farmers had got good prices for cotton in domestic and international markets last season. Indian Meteorological Department (IMD) in its forecast for next five days has said gradual maximum temperature is likely to rise by 2-4 degree centigrade over most parts of northwest India and Madhya Pradesh. In spot market, Cotton dropped by -120 Rupees to end at 45350 Rupees.Technically market is under fresh selling as market has witnessed gain in open interest by 0.44% to settled at 1583 while prices down -830 rupees, now Cotton is getting support at 42380 and below same could see a test of 42040 levels, and resistance is now likely to be seen at 43340, a move above could see prices testing 43960.

Trading Idea for the day

Cotton trading range for the day is 42040-43960.

Cotton dropped on profit booking as growing recessionary fears raised prospects of lower demand.

India’s Cotton sowing fall nearly 14.76% with 31.83 lakh hectares of area sown against area of 37.37 lakh hectares in 2021.

Speculators cut net long position in cotton futures by 1,485 contracts to 42,786 in the week to June 21, data from the CFTC showed

Cocudakl

Cocudakl yesterday settled up by 2% at 2648 on low level buying after prices dropped 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. Pressure seen in cotton also amid expectations of higher supply from the US and lower global demand. In Akola spot market, Cocudakl gained by 29.75 Rupees to end at 2834.35 Rupees per 100 kgs.Technically market is under short covering as market has witnessed drop in open interest by -10.29% to settled at 62620 while prices up 52 rupees, now Cocudakl is getting support at 2565 and below same could see a test of 2481 levels, and resistance is now likely to be seen at 2708, a move above could see prices testing 2767.

Trading Idea for the day

Cocudakl trading range for the day is 2481-2767.

Cocudakl gained on low level buying after prices dropped as the price of other cattle feeds being lower, all the consumers have created a mindset to shift

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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