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Cotton

Cotton yesterday settled down by -0.93% at 41330 tracking weakness ICE cotton as mounting recession worries dimmed the demand outlook for the natural fiber. 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. 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. In spot market, Cotton dropped by -990 Rupees to end at 45330 Rupees.Technically market is under fresh selling as market has witnessed gain in open interest by 13.74% to settled at 1424 while prices down -390 rupees, now Cotton is getting support at 39940 and below same could see a test of 38560 levels, and resistance is now likely to be seen at 42580, a move above could see prices testing 43840.

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Trading Idea for the day

Cotton trading range for the day is 38560-43840

Cotton dropped tracking weakness ICE cotton as mounting recession worries dimmed the demand outlook for the natural fiber

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

Sowing will increase by 12 per cent and go up to 133-135 lakh hectares from last year’s 120 lakh – CAI

Cocudakl

Cocudakl yesterday settled up by 0.19% at 2605 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 dropped by - 25.3 Rupees to end at 2896.4 Rupees per 100 kgs.Technically market is under short covering as market has witnessed drop in open interest by -5.77% to settled at 76140 while prices up 5 rupees, now Cocudakl is getting support at 2566 and below same could see a test of 2528 levels, and resistance is now likely to be seen at 2630, a move above could see prices testing 2656

Trading Idea for the day

Cocudakl trading range for the day is 2528-2656

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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