Cocudakl trading range for the day is 2976-3140 - Kedia Advisory
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COTTON
Cotton yesterday settled down by -0.85% at 26810 as Cotton sowing across the country has picked up with the revival of monsoon in several states, after seeing a lull in the month of July due to a dry spell. Sowing in the north is almost complete with Punjab reporting a slight dip. The sowing has been normal in Haryana while Rajasthan and Gujarat had reported dry spells. There has been a dip in Maharashtra since farmers shifted to other crops like soybean and groundnut, but some pick up is likely in Andhra Pradesh and Tamil Nadu. According to the agriculture ministry’s estimates, cotton acreages till July 29 was 110.73 lh compared with the previous year’s 121.25 lh, lower by 8.68 %. In north India, the acreage is 17 %, while in central India the deficit is 5.33 %. In the south, the acreage is lower by 12.6%. The lower acreage is largely attributed to delayed rains. But with kapas prices ruling at Rs 8000 per quintal, sowing is expected to continue till August-end across various states including Andhra, Telangana, Gujarat, Karnataka and Tamil Nadu. According to industry body Cotton Association of India (CAI), sowing has been completed on 112 lh as compared to 118 lh in the same period last year. In spot market, Cotton dropped by -90 Rupees to end at 27230 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -3.1% to settled at 5275 while prices down -230 rupees, now Cotton is getting support at 26660 and below same could see a test of 26520 levels, and resistance is now likely to be seen at 26990, a move above could see prices testing 27180.
Trading Idea for the day
Cotton trading range for the day is 26520-27180.
Cotton prices dropped as Cotton sowing across the country has picked up with the revival of monsoon in several states.
According to the agriculture ministry’s estimates, cotton acreages was 110.73 lh compared with the previous year’s 121.25 lh, lower by 8.68 %.
According to CAI, sowing has been completed on 112 lh as compared to 118 lh in the same period last year.
COCUDAKL
Cocudakl yesterday settled down by -2.1% at 3035 on profit booking after prices seen supported as the tight supply situation in cottonseed is expected to continue in the coming months considering the stronger demand. 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. 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 gained by 10 Rupees to end at 3110 Rupees per 100 kgs.Technically market is under long liquidation as market has witnessed drop in open interest by - 14.5% to settled at 32140 while prices down -65 rupees, now Cocudakl is getting support at 3006 and below same could see a test of 2976 levels, and resistance is now likely to be seen at 3088, a move above could see prices testing 3140.
Trading Idea for the day
Cocudakl trading range for the day is 2976-3140.
Cocudakl dropped on profit booking after prices seen supported as the tight supply situation in cottonseed is expected to continue.
In Rajasthan, Cotton sowing is done in 596.7 thousand hectares down by -11.4%.
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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