Cocudakl trading range for the day is 2593-2687 - Kedia Advisory
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COTTON
Cotton yesterday settled remain unchangeby 0% at 22020 as support seen after CAI has revised higher Indian cotton export estimates for 2020-21 season at 65 lakh bales against 60 lakh bales projected till last month. Cotton production in Haryana is expected to decline by 27 percent to 1.8 million bales in 2020-21 (JulyJune) season due to yield loss. India’s cotton output in the 2020-21 (OctoberSeptember) market year is seen at 38 million bales, up 4 percent on the year. The country’s cotton exports are likely to be 20 percent higher at 1.02 million tonnes in 2020-21 (October-September) backed by competitive pricing in the global markets and an improvement in international cotton consumption, said Care Rating. Higher exports along with a recovery in domestic cotton demand will help reduce the surplus availability of cotton in the nation despite higher supply, the rating agency said in a note. Cotton farmers from various states are planning to increase the area under cultivation in the coming 2021-22 Kharif season. Indian textile mills have reduced production due to lower domestic demand and labour shortage. The government has allowed mills to operate but markets are closed so mills are facing a cash crunch. Textiles mills dealing in exports are still going strong as Indian yarn prices are attractive. In spot market, Cotton dropped by -40 Rupees to end at 22460 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -10.09% to settled at 4453 while prices remain unchanged 0 rupees, now Cotton is getting support at 21890 and below same could see a test of 21760 levels, and resistance is now likely to be seen at 22180, a move above could see prices testing 22340.
Trading Idea for the day
Cotton trading range for the day is 21760-22340.
Cotton settled flat paring gains earlier seen as CAI has revised higher Indian cotton export estimates for 2020-21 season at 65 lakh bales
Cotton production in Haryana is expected to decline by 27 percent to 1.8 million bales in 2020-21 (July-June) season due to yield loss.
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.
Cocudakl
Cocudakl yesterday settled up by 0.08% at 2632 on some buying support after prices 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. 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 gained by 6.05 Rupees to end at 2761.85 Rupees per 100 kgs.Technically market is under short covering as market has witnessed drop in open interest by -1.5% to settled at 102850 while prices up 2 rupees, now Cocudakl is getting support at 2612 and below same could see a test of 2593 levels, and resistance is now likely to be seen at 2659, a move above could see prices testing 2687.
Trading Idea for the day
Cocudakl trading range for the day is 2593-2687.
Cocudakl recovered on some buying support after prices 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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