Cocudakl trading range for the day is 2863-3047 - Kedia Advisory
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COTTON
Cotton yesterday settled down by -0.11% at 27410 paring gains on profit booking after prices seen supported amid expectations of lower supply and increased demand from the textile industry as countries continue re-opening efforts. World cotton stocks are projected at 89.3 million bales at the end of 2021/22, the lowest in three years. Meanwhile, global production is forecast 5% higher at 118.9 million bales, but still set to remain below 2019 record levels. Output is expected to decline in China as the industry becomes less competitive with rising labour costs.
On the other hand, high cotton yields are projected in the US, Brazil, Australia and Pakistan due to favorable weather conditions and the increasing harvested area. 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. In spot market, Cotton gained by 100 Rupees to end at 27190 Rupees.
Technically market is under fresh selling as market has witnessed gain in open interest by 0.19% to settled at 5755 while prices down -30 rupees, now Cotton is getting support at 27330 and below same could see a test of 27240 levels, and resistance is now likely to be seen at 27580, a move above could see prices testing 27740.
Trading Idea for the day
Cotton trading range for the day is 27240-27740.
Cotton pared gains on profit booking after prices seen supported amid expectations of lower supply and increased demand from the textile industry.
World cotton stocks are projected at 89.3 million bales at the end of 2021/22, the lowest in three years.
Meanwhile, global production is forecast 5% higher at 118.9 million bales, but still set to remain below 2019 record levels
COCUDAKL
Cocudakl yesterday settled up by 2.83% at 2978 after reports that in Rajasthan, Cotton sowing is done in 596.7 thousand hectares as compared to last year’s 673.7 thousand hectares i.e down by -11.4% while for the current year the targeted area of sowing is 780 thousand hectares.
Further also support seen 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. In Akola spot market, Cocudakl dropped by -1.85 Rupees to end at 2969.05 Rupees per 100 kgs.
Technically market is under short covering as market has witnessed drop in open interest by - 3.11% to settled at 50530 while prices up 82 rupees, now Cocudakl is getting support at 2920 and below same could see a test of 2863 levels, and resistance is now likely to be seen at 3012, a move above could see prices testing 3047.
Trading Idea for the day
Cocudakl trading range for the day is 2863-3047.
Cocudakl gained after reports that in Rajasthan, Cotton sowing is done in 596.7 thousand hectares down by -11.4%.
Further also support seen 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.
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