Cocudakl trading range for the day is 2756-2920 - 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 0.57% at 21210 as CAI estimated cotton exports to increase by 20% to 60 lakh bales in the 2020-21 season that begins in October, mainly due to higher international prices. CAI increases the production estimate to 360 lakh bales on higher output in North India. The second wave of Covid-19 is taking its toll on Gujarat’s textile industry which saw at least 25% decline in fabric production in the past 15-20 days. Since the beginning of April, production of fabric has gone down in the state from around 5.50 crore metres to almost 4 crore metres per day. Demand from textile traders has gone down drastically. If the situation doesn’t improve in next fortnight period, production of fabric would further plummet to as low as 50%. If the lockdown increases in Bangladesh, Indian cotton exports will be affected. CAI Crop Committee has estimated the total cotton supply till end of the cotton season 2020-21, that is up to September 30, at 496 lakh bales. Around 35 to 37 lakhs out of the export of 60 to 70 lakh bales of cotton is being exported to Bangladesh. In spot market, Cotton gained by 70 Rupees to end at 21910 Rupees.Technically market is under short covering as market has witnessed drop in open interest by -25.92% to settled at 3041 while prices up 120 rupees, now Cotton is getting support at 21160 and below same could see a test of 21100 levels, and resistance is now likely to be seen at 21280, a move above could see prices testing 21340.
Trading Idea for the day
Cotton trading range for the day is 21100-21340.
Cotton gains as CAI estimated cotton exports to increase by 20% to 60 lakh bales in the 2020-21 season that begins in October.
CAI increases the production estimate to 360 lakh bales on higher output in North India
The second wave of Covid-19 is taking its toll on Gujarat’s textile industry which saw at least 25% decline in fabric production in the past 15-20 days
Cocudakl
Cocudakl yesterday settled down by -1.05% at 2817 on profit booking after prices gained in recent sessions as supply of cottonseeds might become tight in the coming kharif season if farmers decide to expand the area under the fibre crop going by the high price that prevailed during the current season to September. 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. Due to continuous rains last year, there was lot of damage to seed production in Telangana and Tamil Nadu. Cotton sowing area in the State is expected to increase further in 2021-22 kharif in the backdrop of increase of cotton price in the open market during this season. Cotton price touched Rs 6,500 per quintal in the open market, while the Cotton Corporation of India (CCI) fixed the MSP of Rs 5,550 per quintal. At present, farmers in the State are sowing cotton in 15-lakh acres. It is expected to touch 18-lakh to 20-lakh acres in the kharif season. About 150 spinning mills in the State are generating 2-lakh jobs. The State government and Cotton Corporation of India are also in favour of increasing cotton sowing area in the State and making necessary arrangements to supply seeds and fertilisers to farmers. In Akola spot market, Cocudakl gained by 41.75 Rupees to end at 2861.75 Rupees per 100 kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -3.12% to settled at 114100 while prices down -30 rupees, now Cocudakl is getting support at 2787 and below same could see a test of 2756 levels, and resistance is now likely to be seen at 2869, a move above could see prices testing 2920
Trading Idea for the day
Cocudakl trading range for the day is 2756-2920.
Cocudakl dropped on profit booking after prices gained in recent sessions as supply of cottonseeds might become tight in the coming kharif season
Maharashtra to write to Centre, urge rollback of cotton seed price hike
Cotton sowing area in the State is expected to increase further in 2021-22 kharif in the backdrop of increase of cotton price in the open market
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
