Cocudakl trading range for the day is 2885-2987 - Kedia Advisory
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Cotton
Cotton yesterday settled up by 1.86% at 48640 due to concerns over production, slow arrivals, better domestic and exports demand. Domestic cotton arrivals down 25% or 88.95 lakh bales so far this season to around 238 lakh bales compared to last year. The Cotton Association of India has reduced its cotton crop estimate for the 2021-22 season by 8.00 lakh bales to 33.5 million bales from its previous estimate of 34.3 million bales. (One bale=170 kgs.) In the past three months, they have revised the production estimate by 23 lakh bales from their original estimate of 36 million bales. The domestic consumption for the crop year 2021-22 has been reduced by the CAI by 5 lakh bales to 34 million bales. Ending stock as of 30th September 2022 is estimated by the Committee at 4 million bales versus the previous year’s level of 7.5 million bales. Union Minister for Commerce and Industry and Textiles Piyush Goyal will hold a meeting with stakeholders of the cotton textiles value chain on Wednesday in New Delhi. According to Textiles Secretary Upendra Prasad Singh, the Minister has planned a meeting with all stakeholders of the cotton textile sector to discuss the issue of high cotton and yarn prices, the measures that can be taken, etc. “Any decision can be taken only after the meeting,” he said. In spot market, Cotton dropped by -130 Rupees to end at 47810 Rupees.Technically market is under short covering as market has witnessed drop in open interest by -7.94% to settled at 2970 while prices up 890 rupees, now Cotton is getting support at 47980 and below same could see a test of 47330 levels, and resistance is now likely to be seen at 49040, a move above could see prices testing 49450
Trading Idea for the day
Cotton trading range for the day is 47330-49450.
Cotton prices gained from all time high level due to concerns over production, slow arrivals, better domestic and exports demand.
CAI has reduced its cotton crop estimate for the 2021-22 season by 8.00 lakh bales to 33.5 million bales
The Union government may impose a temporary ban on cotton exports if cotton prices continue to surge
Cocudakl
Cocudakl yesterday settled down by -1.35% at 2926 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 dropped by -12.5 Rupees to end at 3072.65 Rupees per 100 kgs.Technically market is under fresh selling as market has witnessed gain in open interest by 13% to settled at 89290 while prices down -40 rupees, now Cocudakl is getting support at 2905 and below same could see a test of 2885 levels, and resistance is now likely to be seen at 2956, a move above could see prices testing 2987.
Trading Idea for the day
Cocudakl trading range for the day is 2885-2987.
Cocudakl prices dropped s 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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