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Cotton

Cotton yesterday settled up by 1.35% at 45880 as the USDA lowered its forecasts for global cotton supplies in 2022/23, as smaller beginning stocks more than offset a 2.6-million-bale increase in production, while consumption and ending stocks were also projected down. At the same time, demand for cotton is seen weakening among the stockists and traders amid high inflationary pressures. The USDA lowered its forecasts for global cotton supplies in 2022/23, as smaller beginning stocks more than offset a 2.6-million-bale increase in production, while consumption and ending stocks were also projected down. After forecasting normal rains in April, the IMD’s updated long range forecast holds out the prospect for more normal rainfall from the southwest monsoon between June and September. Overall precipitation is expected to be 103% of the new long period average (LPA) of 868.6 mm, up from the 99% forecast in April. Pakistan’s weather and environment suit cotton production Over 80% cotton sowing target achieved. Production target has been fixed at 11m bales for current season. Amid unprecedented rise in cotton and yarn prices in the current season, Union Minister Piyush Goyal has directed the authorities concerned to "finalise the matter early", as regards to the extension of import duty waiver on cotton till December 31. In spot market, Cotton dropped by -450 Rupees to end at 47200 Rupees.Technically market is under short covering as market has witnessed drop in open interest by -3.73% to settled at 2790 while prices up 610 rupees, now Cotton is getting support at 44520 and below same could see a test of 43150 levels, and resistance is now likely to be seen at 46630, a move above could see prices testing 47370

Trading Idea for the day

Cotton trading range for the day is 43150-47370.

Cotton gains on short covering as the USDA lowered its forecasts for global cotton supplies in 2022/23.

The US crop was 54% planted, running ahead of the average pace for that date and offering hope of solid yields.

The USDA lowered its forecasts for global cotton supplies in 2022/23, as smaller beginning stocks more than offset a 2.6-million-bale increase in production

Cocudakl

Cocudakl yesterday settled up by 1.8% at 2827 on short covering after prices dropped due to the 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 gained by 3.7 Rupees to end at 3027.5 Rupees per 100 kgs.Technically market is under short covering as market has witnessed drop in open interest by -7.37% to settled at while prices up 50 rupees, now Cocudakl is getting support at 2786 and below same could see a test of 2745 levels, and resistance is now likely to be seen at 2850, a move above could see prices testing 2873.

Trading Idea for the day

Cocudakl trading range for the day is 2745-2873.

Cocudakl gained on short covering after prices dropped as the price of other cattle feeds being lower

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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