Cocudakl trading range for the day is 2953-3059 - Kedia Advisory
Cotton
Cotton yesterday settled up by 1.74% at 47480 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 Telangana government is targeting to increase the area under cotton by 55–65 per cent to about 28–30 lakh hectares (lh) from last year’s 18 lakh hectares even as the cottonseed industry pegged the growth in cotton acreage at 15 per cent in the upcoming kharif season, starting July. As per USDA report, all cotton planted area for coming season (2022) is estimated at 12.2 million acres, up 9 percent from last year. In its latest Apr report, the USDA increase global cotton production forecast in 2021-22 to 120.2 million bales (1 US bale= 218kg), compared to 119.9 million bales in Feb 2022. India’s crop is being unchanged at 26.50 million bales. India allowed duty-free imports of cotton until Sept. 30 as prices in the local market jumped to a record high because of a drop in the production, the government said in a notification. The world's biggest producer of the fibre also removed the Agriculture Infrastructure and Development Cess (AIDC) on the imports, the government said. In spot market, Cotton gained by 720 Rupees to end at 47120 Rupees.Technically market is under short covering as market has witnessed drop in open interest by -3.3% to settled at 3486 while prices up 810 rupees, now Cotton is getting support at 46710 and below same could see a test of 45930 levels, and resistance is now likely to be seen at 48070, a move above could see prices testing 48650.
Trading Idea for the day
Cotton trading range for the day is 45930-48650
Cotton prices rose due to concerns over production, slow arrivals, better domestic and exports demand.
India allowed duty-free imports of cotton until Sept. 30 as prices in the local market jumped to a record high because of a drop in the production
India's cotton output is likely to fall to 33.51 million bales in the current year from last year's 35.3 million bales, estimates CAI.
Cocudakl
Cocudakl yesterday settled up by 0.4% at 3012 on low level buying after 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, 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 15.4 Rupees to end at 3096.6 Rupees per 100 kgs.Technically market is under fresh buying as market has witnessed gain in open interest by 22.5% to settled at 62770 while prices up 12 rupees, now Cocudakl is getting support at 2983 and below same could see a test of 2953 levels, and resistance is now likely to be seen at 3036, a move above could see prices testing 3059.
Trading Idea for the day
Cocudakl trading range for the day is 2953-3059
Cocudakl gained on low level buying after 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
To Read Complete Report & Disclaimer Click Here
Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer
Tag News
We anticipate immense potential benefits from the upcoming Sovereign Gold Bond Tranche in FY...
More News
MCX Crude Oil is likely to trade with sideways to negative bias during today`s trading sessi...