Cocudakl trading range for the day is 2811-3011 - Kedia Advisory
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COTTON
Cotton yesterday settled down by -0.04% at 26850 paring gains on profit booking after prices seen supported as Chinese prices made purchasing U.S. cotton more lucrative. The USDA's weekly export sales report showed net sales of 251,900 running bales (RB) for the 2021/2022 marketing year, primarily for Turkey, Pakistan, Vietnam, Mexico, and China.
The report also showed exports of 246,100 RB for the new marketing year, up 32% from the previous week and 2% from the prior 4- week average. Pink bollworm attack on cotton crop has been reported in some areas in Bathinda district. Farmers are claiming damage on the cotton sown earlier. The pink bollworm attack has been reported in Talwandi Sabo, Sangat and Rama blocks along with few villages adjoining Bathinda city.
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.
In spot market, Cotton gained by 130 Rupees to end at 26720 Rupees.Technically market is under fresh selling as market has witnessed gain in open interest by 4.74% to settled at 5551 while prices down -10 rupees, now Cotton is getting support at 26640 and below same could see a test of 26440 levels, and resistance is now likely to be seen at 27120, a move above could see prices testing 27400.
Trading Idea for the day
Cotton trading range for the day is 26440-27400.
Cotton prices settled flat paring gains on profit booking seen earlier in the day as Chinese prices made purchasing U.S. cotton more lucrative.
The USDA's weekly export sales report showed net sales of 251,900 running bales (RB) for the 2021/2022 marketing year.
Pink bollworm attack on cotton crop has been reported in some areas in Bathinda district.
COCUDAKL
Cocudakl yesterday settled up by 0.42% at 2892 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 gained by 32.9 Rupees to end at 2941.9 Rupees per 100 kgs.
Technically market is under short covering as market has witnessed drop in open interest by -6.04% to settled at 50130 while prices up 12 rupees, now Cocudakl is getting support at 2852 and below same could see a test of 2811 levels, and resistance is now likely to be seen at 2952, a move above could see prices testing 3011.
Trading Idea for the day
Cocudakl trading range for the day is 2811-3011.
Cocudakl prices seen supported as the tight supply situation in cottonseed is expected to continue.
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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