Cocudakl trading range for the day is 2755-2889 - Kedia Advisory
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COTTON
Cotton yesterday settled up by 1.12% at 26260 as the area of cotton cultivation in Marathwada has reduced during this kharif season as more farmers have opted for soyabean over the traditional cash crop, implying a gradual shift in the cropping pattern in the region. Overall area under sowing for Cotton covered is 8.05 lakh ha more than compared to normal of corresponding week.
About 98.38 lakh ha area coverage has been reported compared to normal of corresponding week (90.33 lakh ha). Cotton sowing has taken place only on 67% of the expected area of 6.97 lakh hectare in the Aurangabad division and 65% of the expected area (3.58 lakh hectare) in the Latur division. India’s cotton ending stocks could be lower than 75 lakh bales (170 kg each) in the current season to September as domestic demand has picked up. But some estimates are pegging them higher than 100 lakh bales against a record 120-plus lakh bales last season.
CCI, which had nearly 207 lakh bales of cotton stocks, could be left with 18 lakh bales by the end of the season, the CMD said, adding that most of the sales were meant for domestic consumption. In spot market, Cotton gained by 170 Rupees to end at 26060 Rupees.Technically market is under short covering as market has witnessed drop in open interest by -6.47% to settled at 2169 while prices up 290 rupees, now Cotton is getting support at 26140 and below same could see a test of 26010 levels, and resistance is now likely to be seen at 26350, a move above could see prices testing 26430.
Trading Idea for the day
Cotton trading range for the day is 26010-26430.
Cotton gained as the area of cotton cultivation in Marathwada has reduced during this kharif season as more farmers have opted for soyabean.
Overall area under Cotton covered is 8.05 lakh ha more than compared to normal of corresponding week.
About 98.38 lakh ha area coverage has been reported compared to normal of corresponding week.
COCUDAKL
Cocudakl yesterday settled up by 0.6% at 2836 as the tight supply situation in cottonseed is expected to continue in the coming months considering the stronger demand. Support seen as falling arrival numbers of raw cotton due to the lean supply season and thin stocks lying with ginners and farmers. The CAI has kept its consumption estimate for the current crop year at 330 lakh bale in the previous month. The new season for cotton will start only in October. The probability of consumption of cotton cake shifting towards mixing in the animal feed rations has increased this year because of soy meal turning quite expensive over previous years.
The all India sowing area of cotton had reached 86.45 lakh hectares. The acreage was 104.83 lakh hectares during the corresponding period of last year. Sowing will increase in coming weeks subject to improvement in the rainfall intensity in states of Gujarat/ Maharashtra/ Karnataka, Andhra Pradesh and Telangana. The USDA in its latest report has pegged global ending stocks in 2021/22 down 1.7 million bales to 89.3 million versus 2020/21. Global consumption estimate for is also higher for 2021/22, up 1.1 million bales year on year.
In Akola spot market, Cocudakl dropped by -3.35 Rupees to end at 2900 Rupees per 100 kgs.Technically market is under short covering as market has witnessed drop in open interest by -2.01% to settled at 56650 while prices up 17 rupees, now Cocudakl is getting support at 2795 and below same could see a test of 2755 levels, and resistance is now likely to be seen at 2862, a move above could see prices testing 2889.
Trading Idea for the day
Cocudakl trading range for the day is 2755-2889.
Cocudakl gains as the tight supply situation in cottonseed is expected to continue in the coming months considering the stronger demand.
Support seen as falling arrival numbers of raw cotton due to the lean supply season and thin stocks lying with ginners and farmers.
The CAI has kept its consumption estimate for the current crop year at 330 lakh bale in the previous month.
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