Cocudakl trading range for the day is 2870-2960 - Kedia Advisory
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Cotton
Cotton yesterday settled remain unchangeby 0% at 48640 as global supplies in 2022/23 are projected below a year earlier, as lower beginning stocks more than offset a 2.6-million-bale increase in production, with consumption and ending stocks also lower, the USDA said. Global production is lowered 1.8 million bales from last month, largely due to a drop of 1.0 million bales from India. Global use is down 1.1 million bales, and ending stocks are up 271,000 bales. Global trade is down slightly with a drop of 500,000 bales in India exports. Additionally, imports are lower for China, Pakistan, and Vietnam. U.S. production is slightly lowered to 17.5 million bales, exports are unchanged at 14.8 million, and ending stocks are lowered to 3.4 million bales. The projected U.S. season-average farm price is up 1 cent to a record 92 cents per pound. Global ending stocks for most major producing and consuming countries are slightly lower compared with the previous year. Despite higher global production and lower consumption, drastically lower carryin compared with the previous year is projected to cap any significant rise in stock levels. This is especially relevant to China and India, where 2022/23 carrying levels are significantly below the previous year. Lower government and/or state trading enterprise stocks in both countries show the most significant difference compared with the previous year’s beginning stocks. In spot market, Cotton gained by 460 Rupees to end at 48270 Rupees.Technically market is under fresh selling as market has witnessed gain in open interest by 0.71% to settled at 2991 while prices remain unchanged 0 rupees, now Cotton is getting support at 48330 and below same could see a test of 48030 levels, and resistance is now likely to be seen at 49100, a move above could see prices testing 49570.
Trading Idea for the day
Cotton trading range for the day is 48030-49570.
Cotton extended gains as Global supplies in 2022/23 are projected below a year earlier
Global production is lowered 1.8 million bales from last month, largely due to a drop of 1.0 million bales from India.
Global ending stocks for most major producing and consuming countries are slightly lower compared with the previous year.
Cocudakl
Cocudakl yesterday settled down by -0.38% at 2915 as 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 its latest April report, the USDA increased the global cotton production forecast in 2021-22 to 120.2 million bales, compared to 119.9 million bales in Feb 2022. Meanwhile, the world’s largest cotton importer, India, announced it would waive customs duties and a 5% tax on cotton imports until September to alleviate prices in the textile sector. The world's biggest producer of fibre also removed the Agriculture Infrastructure and Development Cess (AIDC) on the imports. In Akola spot market, Cocudakl gained by 22.25 Rupees to end at 3094.9 Rupees per 100 kgs.Technically market is under fresh selling as market has witnessed gain in open interest by 11.02% to settled at while prices down -11 rupees, now Cocudakl is getting support at 2893 and below same could see a test of 2870 levels, and resistance is now likely to be seen at 2938, a move above could see prices testing 2960.
Trading Idea for the day
Cocudakl trading range for the day is 2870-2960.
Cocudakl prices dropped as 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
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