Cocudakl yesterday settled down by -0.9% at 2310 as bleak economic outlook and sluggish export demand is likely to weigh on the market sentiments. - Kedia advisory
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COCUDAKL
Cocudakl yesterday settled down by -0.9% at 2310 as bleak economic outlook and sluggish export demand is likely to weigh on the market sentiments. However, downside likely to be limited due to shrinking supplies at major trading centers. Cotton production has dropped near to 303 lakh bales in year 2022-23 compared to 307 lakh bales of previous year as per Cotton Association of India. Due to weaker production arrivals has dropped at major trading centers that is likely to support firmness in prices. Cotton export is likely to drop 25 lakh bales in year 2022-23 as compared to 43 lakh bales of previous year. Support also seen after reports that there is a forecast of damage due to unseasonal rains. According to Agriculture Ministry data, India’s cotton production increased to 33.72 million bales (of 170 kg each bale) in the 2022-23 crop year (July-June) against 31.12 million bales a year ago. However, traders and a couple of agencies are pegging the production lower. The US Department of Agriculture (USDA) has estimated India’s cotton exports to decline by 5,00,000 bales this month to 1.8 million, roughly equal to its import forecast. I The International Cotton Advisory Committee (ICAC) lowered its global price outlook for cotton compared with its projections in December 2022. In its May outlook, ICAC has projected the season’s average price forecast range between 96.1 cents and 111.3 cents, with a midpoint of 102.77 cents per pound. This is lower from the midpoint of 115 cents projected in December 2022. In Akola spot market, Cocudakl dropped by -42.3 Rupees to end at 2404.55 Rupees per 100 kgs.Technically market is under fresh selling as the market has witnessed a gain in open interest by 1.76% to settle at while prices are down -21 rupees, now Cocudakl is getting support at 2287 and below same could see a test of 2264 levels, and resistance is now likely to be seen at 2336, a move above could see prices testing 2362.
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