Cotton trading range for the day is 22020-22220 - Kedia Advisory
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
COTTON
Cotton yesterday settled up by 0.36% at 22100 after CAI has revised higher Indian cotton export estimates for 2020-21 season at 65 lakh bales against 60 lakh bales projected till last month. Cotton production in Haryana is expected to decline by 27 percent to 1.8 million bales in 2020-21 (July-June) season due to yield loss. India’s cotton output in the 2020-21 (October-September) market year is seen at 38 million bales, up 4 percent on the year. The country’s cotton exports are likely to be 20 percent higher at 1.02 million tonnes in 2020-21 (October-September) backed by competitive pricing in the global markets and an improvement in international cotton consumption, said Care Rating. Higher exports along with a recovery in domestic cotton demand will help reduce the surplus availability of cotton in the nation despite higher supply, the rating agency said in a note. Cotton farmers from various states are planning to increase the area under cultivation in the coming 2021-22 Kharif season. Indian textile mills have reduced production due to lower domestic demand and labour shortage. The government has allowed mills to operate but markets are closed so mills are facing a cash crunch. Textiles mills dealing in exports are still going strong as Indian yarn prices are attractive. In spot market, Cotton gained by 150 Rupees to end at 22610 Rupees.Technically market is under short covering as market has witnessed drop in open interest by -12.37% to settled at 3902 while prices up 80 rupees, now Cotton is getting support at 22060 and below same could see a test of 22020 levels, and resistance is now likely to be seen at 22160, a move above could see prices testing 22220
Trading Idea for the day
Cotton trading range for the day is 22020-22220.
Cotton seen supported as CAI has revised higher Indian cotton export estimates for 2020-21 season at 65 lakh bales
Cotton production in Haryana is expected to decline by 27 percent to 1.8 million bales in 2020-21 (July-June) season due to yield loss
According to the Punjab Agriculture Department, sowing is been done on only 63,220 hectares, whereas the target is to cover 3.25 lakh hectares area.
Cocudakl
Cocudakl yesterday settled up by 0.53% at 2646 on some buying support after prices dropped amid worries of lockdown it is anticipated that there will be slow supply and same with demand. Cottonseed production and quality were affected last year due to excessive rains in the key producing State of Telangana and some parts of Tamil Nadu. 2021/22 global cottonseed production is projected at nearly 44 million tons, up 5 percent from the current year. Higher forecasts for the United States, Brazil, Australia, and Mali are partially offset by declines in China. U.S. production is forecast up 781,000 tons to nearly 5 million. Waning arrivals of raw cotton due to the fag end of the season and limited stocks of cottonseed with ginners has led to a supply crunch in the market. India has produced around 36 mln bales in the ongoing 2020-21 (Oct-Sep) season, of which nearly 33 mln bales, or 92% of the stock, has already arrived in the market. Considering firm demand outlook for the commodity, the tight supply situation in cottonseed is expected to continue in the coming months as well as the new season for cotton will start only in October. In Akola spot market, Cocudakl gained by 3.95 Rupees to end at 2765.8 Rupees per 100 kgs.Technically market is under short covering as market has witnessed drop in open interest by -2.03% to settled at 100760 while prices up 14 rupees, now Cocudakl is getting support at 2625 and below same could see a test of 2604 levels, and resistance is now likely to be seen at 2662, a move above could see prices testing 2678.
Trading Idea for the day
Cocudakl trading range for the day is 2604-2678.
Cocudakl recovered on some buying support after prices dropped amid worries of lockdown it is anticipated that there will be slow supply and same with demand.
Cottonseed production and quality were affected last year due to excessive rains in the key producing State of Telangana and some parts of Tamil Nadu.
2021/22 global cottonseed production is projected at nearly 44 million tons, up 5 percent from the current year.
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
