Cocudakl trading range for the day is 3113-3191 - Kedia Advisory
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Cotton
Cotton yesterday settled down by -0.25% at 43580 on profit booking after seen supported on fears of shortfall in production and higher demand for raw cotton for export. The arrival of cotton in the country is continuously declining, at present the daily arrivals are 65 to 75 lakh bales which will further decrease in the coming week. At the moment, there are very few ginning mills running in the country, the stock of best quality cotton is very low at the moment, similarly the stock of Binola is also low. The price of cotton yarn is continuously increasing, but there is no major demand in the domestic market and export market, due to which the Spinners' Mills Association has cut production, due to which cotton industries will benefit in the long run. Spinning mills are buying cotton at higher prices as the balance sheet of cotton is becoming tighter continuously. USDA's planting intentions report showed U.S. cotton acreage at 12.234 million acres for the 2022/2023 marketing year versus 12.007 million acres forecasted. The USDA also released weekly export sales data which showed net sales of 234,000 running bales of cotton for 2021/2022, down 24% from the previous week. In spot market, Cotton gained by 50 Rupees to end at 44110 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -4.04% to settled at 4991 while prices down -110 rupees, now Cotton is getting support at 43160 and below same could see a test of 42730 levels, and resistance is now likely to be seen at 44060, a move above could see prices testing 44530.
Trading Idea for the day
Cotton trading range for the day is 42730-44530.
Cotton dropped on profit booking after seen supported on fears of shortfall in production and higher demand for raw cotton for export.
The arrival of cotton in the country is continuously declining, at present the daily arrivals are 65 to 75 lakh bales which will further decrease in the coming week.
At the moment, there are very few ginning mills running in the country, the stock of best quality cotton is very low at the moment.
Cocudakl
Cocudakl yesterday settled flat at 3148 on profit booking after prices seen supported on fears of a shortfall in production and higher demand for export. CAI in its latest report has reduced its cotton production by 5.00 lakh bales to 343.13 lakh bales (1 bale of 170 kg) for 2021-22. Consumption also declined by 5 lakh bales to 340 lakh bales, while export and import figures remain unchanged at 15-45 lakh bales respectively. The government has estimated the production of cotton under the second advance estimate for the year 2021-22 at 340 lakh bales as against 362 lakh bales in the first estimate. The USDA in its monthly report has cut India's cotton production to 27.5 million bales from 28 million bales last month, while the US, the largest exporter, cut cotton production by 3.61% to 17.6 million bales. As per estimate, cotton production in Gujarat is expected to be lower in 2021-22 season because of lesser sown area around 22.53 lakh hectares as compared to 25.53 lakh hectares in the previous season. Support also seen amid expectations of firm demand, particularly from China and tight supplies. An urgency in obtaining the supplies and a buyout of cotton futures by hedge funds also supported the cotton market. In Akola spot market, Cocudakl dropped by -12.65 Rupees to end at 3289 Rupees per 100 kgs.Technically market is under fresh selling as market has witnessed gain in open interest by 7.46% to settled at 101150 while prices remain unchanged 0 rupees, now Cocudakl is getting support at 3130 and below same could see a test of 3113 levels, and resistance is now likely to be seen at 3169, a move above could see prices testing 3191.
Trading Idea for the day
Cocudakl trading range for the day is 3113-3191.
Cocudakl settled flat on profit booking after prices seen supported on fears of a shortfall in production and higher demand for export.
CAI in its latest report has reduced its cotton production by 5.00 lakh bales to 343.13 lakh bales for 2021-22
The USDA in its monthly report has cut India's cotton production to 27.5 million bales from 28 million bales last month
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