Cotton trading range for the day is 23510-24050 - Kedia Advisory
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Cotton
Cotton yesterday settled down by -0.79% at 23780 as Cotton acreage could see 5-10 per cent rise this Kharif season, thanks to good prices farmers have got during the current marketing season (October 2020-September 2021). Assured procurement through the Cotton Corporation of India, prospects of good monsoon and groundnut cultivation turning costly are other factors that are likely to aid higher coverage of cotton this year. Cotton Association of India (CAI) President Atul Ganatra told BusinessLine that the area under cotton will likely increase mainly in Gujarat, Maharashtra, Madhya Pradesh, Telangana, and Karnataka among the States where the natural fibre is grown. Latest cotton crop estimate for the season 2020-21, the trade body Cotton Association of India (CAI) has reduced the crop size by 4 lakh bales (each of 170 kg) to 356 lakh bales. The reduction is attributed to the lower output expected in Gujarat and Telangana. The CAI estimates show a decrease of one lakh bales in the crop estimate for Gujarat, while cotton crop for Telangana is estimated lower by 3 lakh bales based on the pressing data provided by Telangana Cotton Millers & Traders Welfare Association. In spot market, Cotton dropped by -120 Rupees to end at 24130 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -4.35% to settled at 3514 while prices down - 190 rupees, now Cotton is getting support at 23640 and below same could see a test of 23510 levels, and resistance is now likely to be seen at 23910, a move above could see prices testing 24050.
Trading Idea for the day
Cotton trading range for the day is 23510-24050.
Cotton prices dropped as Cotton acreage could see 5-10 per cent rise this Kharif season
CAI that the area under cotton will likely increase among the States where the natural fibre is grown
The reduction is attributed to the lower output expected in Gujarat and Telangana.
Cocudakl
Cocudakl yesterday settled up by 0.61% at 2986 as 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. Support also seen amid prospects of higher exports and falling supply in the physical market. However there were worries of lockdown it is anticipated that there will be slow supply and same with demand. 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 dropped by -9.65 Rupees to end at 2967.5 Rupees per 100 kgs.Technically market is under short covering as market has witnessed drop in open interest by -2.6% to settled at 83800 while prices up 18 rupees, now Cocudakl is getting support at 2956 and below same could see a test of 2925 levels, and resistance is now likely to be seen at 3014, a move above could see prices testing 3041.
Trading Idea for the day
Cocudakl trading range for the day is 2925-3041.
Cocudakl gained as Cottonseed production and quality were affected
Support also seen amid prospects of higher exports and falling supply in the physical market.
2021/22 global cottonseed production is projected at nearly 44 million tons, up 5 percent from the current year.
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