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Cotton

Cotton yesterday settled up by 0.16% at 25210 tracking firmness in overseas prices as drought continued across the Canadian Prairies, threatening crop yields. The arrival of mustard in the mandis has decreased at all places in the country. U.S. rapeseed production is forecast to reach a record 1.8 million tons on record area and trend yield.

Pressure also seen as Canada rapeseed production is projected at 20.5 million tons, up 1.5 million on greater area. U.S. rapeseed production is forecast to reach a record 1.8 million tons on record area and trend yield. Pressure also seen as Canada rapeseed production is projected at 20.5 million tons, up 1.5 million on greater area. COOIT was against any reduction in import duties on edible oils but wanted the Centre to remove the GST of 5 per cent on mustard seed and oil as it will help farmers and consumers both. European Union rapeseed production is projected to show a modest gain in 2021/22 on increased planted area and improved yield but will remain below the levels observed from 2016 to 2018.

In spot market, Cotton gained by 10 Rupees to end at 25240 Rupees.Technically market is under short covering as market has witnessed drop in open interest by -4.01% to settled at 4812 while prices up 40 rupees, now Cotton is getting support at 24940 and below same could see a test of 24660 levels, and resistance is now likely to be seen at 25680, a move above could see prices testing 26140.

Trading Idea for the day

Cotton trading range for the day is 24660-26140.

Cotton prices gained on slow sowing and higher demand from mills.

The cotton crop in Punjab has been infected with a pest called pink bollworm for the second consecutive year.

CAI demand for withdrawal of 10 per cent customs duty on cotton imports.

Cocudakl

Cocudakl yesterday settled down by -0.59% at 2871 on profit booking after prices gained as there is a possibility of damage to the crops which have been sown due to less rain for the next several days. 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 has resulted in supply crunch in the market. The demand and supply balance sheet for cotton is indicative of prices to remain firm in coming months. 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. World trade on the other hand is estimated 1.1 million bales higher, considering better import possibilities from China, Bangladesh, and Turkey. The industry remains optimistic demand for Indian cotton products to improve in near term from the global economic rebound. The CAI has kept its consumption estimate for the current crop year at 330 lakh bale in the previous month. In Akola spot market, Cocudakl dropped by -19.3 Rupees to end at 2900 Rupees per 100 kgs.

Technically market is under fresh selling as market has witnessed gain in open interest by 34.16% to settled at 48500 while prices down - 17 rupees, now Cocudakl is getting support at 2848 and below same could see a test of 2826 levels, and resistance is now likely to be seen at 2904, a move above could see prices testing 2938.

Trading Idea for the day

Cocudakl trading range for the day is 2826-2938.

Cocudakl dropped on profit booking after prices gained 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 resulted in supply crunch in the market.

Support seen amid falling arrival numbers of raw cotton due to the lean supply season and thin stocks.

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