Cocudakl trading range for the day is 2491-2651 - Kedia Advisory
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Cotton
Cotton yesterday settled down by -0.36% at 44790 on profit booking after prices seen supported as crop has been damaged as excessive rains continue to hit parts of the Maharashtra State. According to government sources, if rains continue to hit the State for the next few days more crop is likely to get damaged. However, upside seen limited after CAI reports at least 10% higher sowing is expected compared to previous kharif season’s 12 million hectares. Looking at the current trend, cotton sowing in Maharashtra is expected to cross 4.2 million hectares. In Gujarat, it would be around 2.7 million hectares. The cotton acreage in north will be around 1.5 million hectares and the same for southern states is likely to remain at around 3.5-4.0 million hectare. Reports of severe damage to crop due to heavy rains in Gujarat in the last 4 days, most of the sowings have failed. In Punjab, area under cotton cultivation dips to lowest since 2010, also Cotton crop in Punjab is on radar for second straight year as attack of whitefly, pink bollworm seen, as per the report. China has decided to buy three to five lac tonnes of cotton from international markets for its state reserves. The U.S. 2022/23 cotton projections show lower production, exports, and ending stocks compared with last month. In spot market, Cotton gained by 250 Rupees to end at 43390 Rupees.Technically market is under fresh selling as market has witnessed gain in open interest by 0.23% to settled at 1299 while prices down -160 rupees, now Cotton is getting support at 44210 and below same could see a test of 43630 levels, and resistance is now likely to be seen at 45160, a move above could see prices testing 45530.
Trading Idea for the day
Cotton trading range for the day is 43630-45530.
Cotton dropped on profit booking after prices seen supported as crop has been damaged as excessive rains continue to hit parts of the Maharashtra State
CAI reports at least 10% higher sowing is expected compared to previous 12 million hectares.
The U.S. 2022/23 cotton projections show lower production, exports, and ending stocks compared with last month.
Cocudakl
Cocudakl yesterday settled down by -0.62% at 2582 on profit booking after prices gained 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. At present, only 15% of crushing mills are operational in Gujarat as the demand Khali has come down drastically due to high prices and availability of grass fodder. In Akola spot market, Cocudakl dropped by -18.6 Rupees to end at 2785.65 Rupees per 100 kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -8.41% to settled at 42060 while prices down -16 rupees, now Cocudakl is getting support at 2537 and below same could see a test of 2491 levels, and resistance is now likely to be seen at 2617, a move above could see prices testing 2651.
Trading Idea for the day
Cocudakl trading range for the day is 2491-2651.
Cocudakl dropped on profit booking after prices gained 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
Global cottonseed production is projected at 44.1 million tons, up 3 percent
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