Cocudakl trading range for the day is 2723-2849.- Kedia Advisory
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
COTTON
Cotton yesterday settled up by 1.51% at 32250 amid reports heavy rains in November damaged cotton crop over 44,200 ha cotton has been affected in Andhra Pradesh. World cotton production for the 2021/22 season is poised for a full comeback from a disappointing 2020/21 season, led by the United States, the International Cotton Advisory Committee said in its annual report. It forecast 2021/22 output at 25.71 million tonnes, a 6.01% increase from 2020/21. USDA weekly export sales report showed net sales of 286,400 running bales, down 25% from the previous week but about 5% higher compared with the prior 4-week average. Increases were primarily for China. In its monthly balance sheet for November 2021, the CAI has estimated total cotton supply at 154.76 lakh bales of 170 kgs each, which consists of the arrivals of 77.76 lakh bales of 170 kgs each, imports of 2 lakh bales of 170 kgs each during the month of November 2021 and Opening Stock of 75 lakh bales of 170 kgs each at the beginning of the season on 1st October 2021. Further, the CAI has estimated cotton consumption for the months of October and November 2021 at 55.83 lakh bales of 170 kgs each while export shipment of cotton during the months of October and November 2021 is estimated at 7.00 lakh bales of 170 kgs each. In spot market, Cotton gained by 90 Rupees to end at 31880 Rupees.Technically market is under short covering as market has witnessed drop in open interest by -11.23% to settled at 2260 while prices up 480 rupees, now Cotton is getting support at 31950 and below same could see a test of 31650 levels, and resistance is now likely to be seen at 32420, a move above could see prices testing 32590.
Trading Idea for the day
Cotton trading range for the day is 31650-32590.
Cotton gained amid reports heavy rains in November damaged cotton crop over 44,200 ha cotton has been affected in Andhra Pradesh
World cotton production for the 2021/22 season is poised for a full comeback from a disappointing 2020/21 season, led by the United States.
USDA weekly export sales report showed net sales of 286,400 running bales, down 25% from the previous week
COCUDAKL
Cocudakl yesterday settled up by 0.18% at 2802 amid tight supplies owing to higher input costs with rising global demand. However, upside seen limited as the chances of re-emergence of the Covid through the Omicron variant is said to be having a global impact. The global cotton balance sheets for 2021/22 include higher production and consumption, and slightly lower ending stocks. The projected global consumption is up 700,000 bales. The world production forecast is 1.5 million bales higher as gains for Brazil, Australia, Pakistan, and the United States more than offset a 200,000- bale decline in Greece following unusually heavy October rainfall. World ending stocks are projected at 86.9 million bales, 200,000 bales lower than in October, and 2.4 million bales lower than in 2020/21. The broader-based view for cotton is therefore positive from a pricing perspective, which implies that cotton cake prices shall tend to remain in an upward trend in forthcoming weeks. Dairy prices rose at the global auction, surpassing their March peak to touch a fresh seven-year high, as tight milk supply underpins demand for New Zealand’s biggest export commodity. The Global Dairy Trade price index increased 1.4 per cent at the latest auction, to touch its highest level since March 2014. The index has been on a march higher since August. In Akola spot market, Cocudakl dropped by -8.4 Rupees to end at 2818.15 Rupees per 100 kgs.Technically market is under short covering as market has witnessed drop in open interest by -2.8% to settled at 67770 while prices up 5 rupees, now Cocudakl is getting support at 2763 and below same could see a test of 2723 levels, and resistance is now likely to be seen at 2826, a move above could see prices testing 2849.
Trading Idea for the day
Cocudakl trading range for the day is 2723-2849.
Cocudakl gained amid tight supplies owing to higher input costs with rising global demand.
However, upside seen limited as the chances of re-emergence of the Covid through the Omicron variant is said to be having a global impact.
The U.S. cotton 2021/22 supply and demand forecasts are largely
To Read Complete Report & Disclaimer Click Here
Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer
