Cocudakl trading range for the day is 2809-3017 - Kedia Advisory
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Cotton
Cotton yesterday settled up by 0.38% at 23810 as in its latest cotton crop estimate for the season 2020-21, the trade body Cotton Association of India (CAI) has reduced the crop size by 4 lakh bales (each of 170 kg) to 356 lakh bales. The reduction is attributed to the lower output expected in Gujarat and Telangana. The CAI estimates show a decrease of one lakh bales in the crop estimate for Gujarat, while cotton crop for Telangana is estimated lower by 3 lakh bales based on the pressing data provided by Telangana Cotton Millers & Traders Welfare Association. The trade body has increased the consumption estimate for the current crop year by 10 lakh bales to 325 lakh bales from its previous estimate of 315 lakh bales. “The Committee has made this revision considering the brisk demand for cotton yarn despite disruptions caused on account of the lockdown implemented to arrest the second wave of Covid-19 pandemic in the country,” it said. Cotton exports are expected to increase to 72 lakh bales in the current crop season, which is 7 lakh bales more than the initial estimate of 65 lakh bales in May. In the last crop season, only 50 lakh bales were exported In spot market, Cotton dropped by -20 Rupees to end at 24110 Rupees.Technically market is under short covering as market has witnessed drop in open interest by -9.37% to settled at 3076 while prices up 90 rupees, now Cotton is getting support at 23690 and below same could see a test of 23580 levels, and resistance is now likely to be seen at 23880, a move above could see prices testing 23960.
Trading Idea for the day
Cotton trading range for the day is 23580-23960
Cotton prices gained as Cotton output for 2020-21 revised downwards to 356 lakh bales
The reduction is attributed to the lower output expected in Gujarat and Telangana.
Cotton exports are expected to increase to 72 lakh bales in the current crop season, which is 7 lakh bales more than the initial estimates
Cocudakl
Cocudakl yesterday settled up by 0.38% at 2922 as 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. Support also seen amid prospects of higher exports and falling supply in the physical market. However there were worries of lockdown it is anticipated that there will be slow supply and same with demand. 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 dropped by -20.8 Rupees to end at 2956.95 Rupees per 100 kgs.Technically market is under short covering as market has witnessed drop in open interest by -5.59% to settled at 76650 while prices up 11 rupees, now Cocudakl is getting support at 2865 and below same could see a test of 2809 levels, and resistance is now likely to be seen at 2969, a move above could see prices testing 3017.
Trading Idea for the day
Cocudakl trading range for the day is 2809-3017.
Cocudakl prices seen suported as Cottonseed production and quality were affected
Support also seen amid prospects of higher exports and falling supply in the physical market.
2021/22 global cottonseed production is projected at nearly 44 million tons, up 5 percent from the current year.
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