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Cocudakl

Cocudakl yesterday settled up by 1.13% at 2514 due to shrinking supplies at major trading centers. Due to weaker production arrivals has dropped at major trading centers that is likely to support firmness in prices. However, upside likely to be limited as bleak economic outlook and sluggish export demand is likely to weigh on the market sentiments. 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. 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 gained by 7.4 Rupees to end at 2642.65 Rupees per 100 kgs.Technically market is under short covering as the market has witnessed a drop in open interest by -6.49% to settle at 50550 while prices are up 28 rupees, now Cocudakl is getting support at 2478 and below same could see a test of 2443 levels, and resistance is now likely to be seen at 2533, a move above could see prices testing 2553

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