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Cotton 

Cotton yesterday settled up by 1.32% at 46970 as support seen after reports of 18 per cent less area under cotton sown than last year in Punjab. Despite the Punjab government setting a target to have 4 lakh hectares under cotton to reduce land under paddy, the state has witnessed an 18 per cent decrease from last year, when about 3.03 lakh hectares of the then targeted 3.25 lakh hectares were under cotton. Till now, cotton was sown on only 2.48 lakh hectares of land; the cotton sowing is almost over. Also, Punjab could achieve only 62% of its targeted area this year. Punjab's Mansa district recorded 45,000 hectares under cotton, a 7,000-hectare decrease from the 52,000 hectares recorded last year. A target of 64,000 hectares was set for the district. The pink bollworm attack on Bt cotton has left farmers worried in Mansa district, the cotton belt of Punjab. At some places, farmers have even started spraying on their own to protect the crop. The Agriculture Department has barred farmers from spraying indiscriminately on the cotton crop. Experts in the department described the attack as “minor” and said it was below the ETL (economic threshold level). In spot market, Cotton gained by 590 Rupees to end at 47690 Rupees.Technically market is under short covering as market has witnessed drop in open interest by - 2.4% to settled at 2478 while prices up 610 rupees, now Cotton is getting support at 46400 and below same could see a test of 45830 levels, and resistance is now likely to be seen at 47460, a move above could see prices testing 47950.

Trading Idea for the day

Cotton trading range for the day is 45830-47950.

Cotton gains as support seen after reports of 18 per cent less area under cotton sown than last year in Punjab.

Punjab's Mansa district recorded 45,000 hectares under cotton, a 7,000- hectare decrease from the 52,000 hectares recorded last year.

Pink bollworm attack leaves Mansa's cotton farmers worried

Cocudakl 

Cocudakl yesterday settled up by 0.07% at 2876 on low level buying after prices dropped due to the price of other cattle feeds being lower than the price of cottonseed oilcake, all the consumers have created a mindset to shift towards other cattle feeds. Global cottonseed production is projected at 44.1 million tons, up 3 percent, with gains in China, India, Turkey, and Uzbekistan. Cottonseed exports are forecast down nearly 2 percent, while crush is projected to grow 3 percent. Cottonseed oil trade is forecast to decline on lower export projections for the United States due to higher domestic demand. The new season for cotton is expected to be good. Retailer expects slight decline in dairy demand as supply uncertainties remain. Further pressure seen as Dairy farmers have demanded a hike in milk price in the midst of rising production cost, and the government has convened a meeting of farmers and farmers’ representatives in Thiruvananthapuram on May 10. Milk procurement prices have been rising, prompting higher revenues for dairy companies but also leading to pressure on margins in FY2023-24, according to a report. The new season for cotton is expected to be good for farmers as the market price of the fiber is currently more than MSP. Pressure seen in cotton also amid expectations of higher supply from the US and lower global demand. In Akola spot market, Cocudakl gained by 14.45 Rupees to end at 3074.6 Rupees per 100 kgs.Technically market is under fresh buying as market has witnessed gain in open interest by 10.71% to settled at 75350 while prices up 2 rupees, now Cocudakl is getting support at 2862 and below same could see a test of 2849 levels, and resistance is now likely to be seen at 2885, a move above could see prices testing 2895.

Trading Idea for the day

Cocudakl trading range for the day is 2849-2895

Cocudakl gains on low level buying after prices dropped as the price of other cattle feeds being lower, all the consumers have created a mindset to shift

Global cottonseed production is projected at 44.1 million tons, up 3 percent

Cottonseed exports are forecast down nearly 2 percent, while crush is projected to grow 3 percent.

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