Cocudakl trading range for the day is 2584-2698 - Kedia Advisory
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COTTON
Cotton yesterday settled up by 0.63% at 22190 as some support seen after Cotton sowing has been delayed in Punjab for the coming 2021-22 season. According to the Punjab Agriculture Department, sowing is been done on only 63,220 hectares till 10th May 2021, whereas the target is to cover 3.25 lakh hectares area and till now as less than 20 percent of the crop has been sown. The ideal time for sowing cotton is considered to be up to 15th May’2021. The late start of sowing is due to the unavailability of canal water for many days in the initial stage and also the late harvest of wheat crops in some areas. US Department of Agriculture (USDA) has pegged India’s cotton production next season (October 2021 - September 2022) at 378 lakh bales (of 170 kg each), up four per cent from its current season’s estimate of 362.5 lakh bales. But the Indian textile industry feels that it is too early to make any projection, given the vagaries of the South-West Monsoon. In its “Cotton and Products Update”, it said that the higher production would be in view of yield increasing by five per cent as the South-West Monsoon has been forecast to be normal by the India Meteorological Department (IMD). In spot market, Cotton gained by 80 Rupees to end at 22460 Rupees.Technically market is under short covering as market has witnessed drop in open interest by -5.23% to settled at 5666 while prices up 140 rupees, now Cotton is getting support at 22080 and below same could see a test of 21970 levels, and resistance is now likely to be seen at 22300, a move above could see prices testing 22410.
Trading Idea for the day
Cotton trading range for the day is 21970-22410.
Cotton prices gained as some support seen after Cotton sowing has been delayed in Punjab for the coming 2021-22 season
According to the Punjab Agriculture Department, sowing is been done on only 63,220 hectares, whereas the target is to cover 3.25 lakh hectares area
USDA has pegged India’s cotton production next season at 378 lakh bales (of 170 kg each), up four per cent
Cocudakl
Cocudakl yesterday settled down by -0.42% at 2637 amid worries of lockdown it is anticipated that there will be slow supply and same with demand. Cottonseed production and quality were affected last year due to excessive rains in the key producing State of Telangana and some parts of Tamil Nadu. 2021/22 global cottonseed production is projected at nearly 44 million tons, up 5 percent from the current year. Higher forecasts for the United States, Brazil, Australia, and Mali are partially offset by declines in China. U.S. production is forecast up 781,000 tons to nearly 5 million. Waning arrivals of raw cotton due to the fag end of the season and limited stocks of cottonseed with ginners has led to a supply crunch in the market. India has produced around 36 mln bales in the ongoing 2020-21 (Oct-Sep) season, of which nearly 33 mln bales, or 92% of the stock, has already arrived in the market. Considering firm demand outlook for the commodity, the tight supply situation in cottonseed is expected to continue in the coming months as well as the new season for cotton will start only in October. In Akola spot market, Cocudakl dropped by -15.5 Rupees to end at 2755.25 Rupees per 100 kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -0.17% to settled at 104460 while prices down -11 rupees, now Cocudakl is getting support at 2610 and below same could see a test of 2584 levels, and resistance is now likely to be seen at 2667, a move above could see prices testing 2698.
Trading Idea for the day
Cocudakl trading range for the day is 2584-2698.
Cocudakl dropped amid worries of lockdown it is anticipated that there will be slow supply and same with demand.
Cottonseed production and quality were affected last year due to excessive rains in the key producing State of Telangana and some parts of Tamil Nadu.
2021/22 global cottonseed production is projected at nearly 44 million tons, up 5 percent from the current year.
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