Cocudakl trading range for the day is 2506-2700 - Kedia Advisory
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Cotton
Cotton yesterday settled down by -1.86% at 41720 as sowing of cotton has picked up in the country amid an advancing monsoon, and rainfall over the next fortnight will be crucial. 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. Between June 27 and 29, scattered to fairly widespread rainfall is likely over peninsular India and east India, while there could be an increase in rainfall over northwest and central India, it said. The Cotton Association of India (CAI), is bullish about the sowing prospects this kharif season. “Sowing will increase by 12 per cent and go up to 133-135 lakh hectares from last year’s 120 lakh,” said Atul Ganatra, President, CAI. Ganatra further said the increase in acreage expansion will be the highest in Gujarat, the largest producer of the fibre, at around 20-25 per cent. In spot market, Cotton dropped by -810 Rupees to end at 46380 Rupees.Technically market is under fresh selling as market has witnessed gain in open interest by 28.41% to settled at 1252 while prices down -790 rupees, now Cotton is getting support at 40530 and below same could see a test of 39340 levels, and resistance is now likely to be seen at 42530, a move above could see prices testing 43340.
Trading Idea for the day
Cotton trading range for the day is 39340-43340.
Cotton prices dropped as sowing of cotton has picked up in the country amid an advancing monsoon
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
Cocudakl
Cocudakl yesterday settled down by -1.7% at 2600 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 dropped by -30.6 Rupees to end at 2921.7 Rupees per 100 kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -2.71% to settled at 80800 while prices down -45 rupees, now Cocudakl is getting support at 2553 and below same could see a test of 2506 levels, and resistance is now likely to be seen at 2650, a move above could see prices testing 2700.
Trading Idea for the day
Cocudakl trading range for the day is 2506-2700
Cocudakl 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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