Cocudakl trading range for the day is 2483-2637 - Kedia Advisory
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Cotton
Cotton yesterday settled up by 0.26% at 30550 due to huge demand of the cotton from China, which is the largest importer of the cotton crop, as well as from the local spinning industry. Prices rose amid farmers expecting the lowest production of cotton in the past five years due to the attack of pink bollworm pest in some parts, surplus rain in Haryana’s cotton belt in August and September months and overall less area under cotton crop in the region this year. According to the Cotton Corporation of India (CCI) and the Indian Cotton Association Limited (ICAL), this year cotton was sown on total of 16.99 lakh hectares (LH) in north region, including 3.03 LH in Punjab, which has witnessed an increase of around 52,000 hectares this year against last year, 6.88 LH in Haryana, which is 49,000 hectares less than the last year, and 7.08 LH in Rajasthan, including 3.44 LH and 3.64 LH in upper and lower Rajasthan, respectively. After the attack of pink bollworm in several parts of the cotton belt of the three states, damage due to rain, the expected production from these three states is around 52.89 lakh bales this year which would be around 10 lakh bales less than last year. In spot market, Cotton gained by 300 Rupees to end at 28860 Rupees.Technically market is under short covering as market has witnessed drop in open interest by -3.15% to settled at 2092 while prices up 80 rupees, now Cotton is getting support at 30170 and below same could see a test of 29800 levels, and resistance is now likely to be seen at 30950, a move above could see prices testing 31360
Trading Idea for the day
Cotton trading range for the day is 29800-31360
Cotton prices gained due to huge demand of the cotton from China, which is the largest importer of the cotton crop, as well as from the local spinning industry.
Prices rose amid farmers expecting the lowest production of cotton in the past five years due to the attack of pink bollworm pest in some parts
Due to dip in production, local industry too wants to purchase as much cotton is available in the mandis
Cocudakl
Cocudakl yesterday settled up by 0.91% at 2558 amid tight supply situation in cottonseed is expected to continue in the coming months considering the stronger demand. However upside seen limited as crop seems to be in good condition after Gujarat received very good rainfall from last few days. Cotton production will still be high because of good rains and may touch 350-360 lakh bales despite the area under coverage has gone down by 6-8%, from 133 lakh hectares last year to 125 lakh hectares in the current season. The U.S. Department of Agriculture forecast lower production and also cut ending stocks estimates for the 2021/22 marketing year in a monthly report. In its WASDE report, the USDA projected lower U.S. production, exports and ending stocks compared with July, as well as lower world 2021/22 ending stocks. CAI in its July estimate of the cotton crop for the season 2020-21 beginning October 1, 2020, has reduced the crop estimate by 1.50 lakh bales to 354.50 lakh bales from its previous estimate of 356 lakh bales. The CAI has maintained its cotton crop estimate for the Northern Zone at the same level as in its previous month’s estimate i.e. at 65.50 lakh bales. In Akola spot market, Cocudakl dropped by -11.8 Rupees to end at 2756.2 Rupees per 100 kgs.Technically market is under short covering as market has witnessed drop in open interest by -3.78% to settled at while prices up 23 rupees, now Cocudakl is getting support at 2521 and below same could see a test of 2483 levels, and resistance is now likely to be seen at 2598, a move above could see prices testing 2637.
Trading Idea for the day
Cocudakl trading range for the day is 2483-2637.
Cocudakl gained amid tight supply situation in cottonseed is expected to continue in the coming months considering the stronger demand
However upside seen limited as crop seems to be in good condition after Gujarat received very good rainfall from last few days.
The cotton crop estimate for the Central Zone has been reduced by 0.50 lakh bales to 193.50 lakh bales
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