Cotton trading range for the day is 24950-26270 - Kedia Advisory
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Cotton
Cotton yesterday settled down by -0.5% at 25740 on profit booking after prices seen supported as Cotton growers in south Punjab are a worried lot these days as pink bollworm infestation has been reported in more areas ahead of the main harvesting period of the kharif crop starting next week. According to the state agriculture department, all 14 blocks of Bathinda and Mansa, the two biggest cotton-producing districts of Punjab, have reported the pest attack. A total of 3.25 lakh hectares is under cotton cultivation in Punjab. Nearly 5% of the area under the crop in Bathinda (96,000 hectares) and Mansa (65,000 hectares) is under the pest attack. As per for agriculture department, cotton sowing is less by around 7 percent compared to same time last year, but as per the trade report from all 10 states of cotton growing this year, the standing crop condition is very excellent due to proper rain and the trade is expecting 10 to 20% more yield this year compared to last year state wise. So, definitely, we are not only expecting better crop but also very good quality in the coming season this year, said Ganatra. In spot market, Cotton gained by 10 Rupees to end at 26650 Rupees.Technically market is under fresh selling as market has witnessed gain in open interest by 0.59% to settled at 1710 while prices down -130 rupees, now Cotton is getting support at 25350 and below same could see a test of 24950 levels, and resistance is now likely to be seen at 26010, a move above could see prices testing 26270.
Trading Idea for the day
Cotton trading range for the day is 24950-26270.
Cotton dropped on profit booking after prices seen supported as growers in Punjab are a worried as pink bollworm infestation has been reported
As per for agriculture department, cotton sowing is less by around 7 percent compared to same time last year
The Cotton Corporation of India has almost managed to offload the cotton stock it had procured during the last season.
Cocudakl
Cocudakl yesterday settled down by -0.63% at 2543 as crop seems to be in good condition after Gujarat received very good rainfall from last few days. Cotton production will still be high because of good rains and may touch 350-360 lakh bales despite the area under coverage has gone down by 6-8%, from 133 lakh hectares last year to 125 lakh hectares in the current season. The U.S. Department of Agriculture forecast lower production and also cut ending stocks estimates for the 2021/22 marketing year in a monthly report. In its WASDE report, the USDA projected lower U.S. production, exports and ending stocks compared with July, as well as lower world 2021/22 ending stocks. CAI in its July estimate of the cotton crop for the season 2020-21 beginning October 1, 2020, has reduced the crop estimate by 1.50 lakh bales to 354.50 lakh bales from its previous estimate of 356 lakh bales. The CAI has maintained its cotton crop estimate for the Northern Zone at the same level as in its previous month’s estimate i.e. at 65.50 lakh bales. In Akola spot market, Cocudakl dropped by -40.7 Rupees to end at 2905 Rupees per 100 kgs.Technically market is under fresh selling as market has witnessed gain in open interest by 5.96% to settled at 19210 while prices down -16 rupees, now Cocudakl is getting support at 2524 and below same could see a test of 2505 levels, and resistance is now likely to be seen at 2565, a move above could see prices testing 2587.
Trading Idea for the day
Cocudakl trading range for the day is 2505-2587.
Cocudakl prices dropped as crop seems to be in good condition after Gujarat received very good rainfall from last few days.
However downside were limited amid tight supply situation in cottonseed is expected to continue in the coming months considering the stronger demand.
The cotton crop estimate for the Central Zone has been reduced by 0.50 lakh bales to 193.50 lakh bales
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