Cotton trading range for the day is 26600-27360 - Kedia Advisory
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COTTON
Cotton yesterday settled up by 0.82% at 27030 tracking rise in ICE cotton amid concerns grew that harvest of the natural fiber crop could be delayed as forecasts pointed to inadequate rains in key regions. The U.S. Department of Agriculture's weekly export sales report showed net sales of 149,300 running bales (RB) for the 2021/2022 marketing year and exports of 229,500 RB, down 4% from the previous week and 5% from the prior 4-week average. Cotton sowing across the country has picked up with the revival of monsoon in several states, after seeing a lull in the month of July due to a dry spell. Sowing in the north is almost complete with Punjab reporting a slight dip. The sowing has been normal in Haryana while Rajasthan and Gujarat had reported dry spells. There has been a dip in Maharashtra since farmers shifted to other crops like soybean and groundnut, but some pick up is likely in Andhra Pradesh and Tamil Nadu. The lower acreage is largely attributed to delayed rains. But with kapas prices ruling at Rs 8000 per quintal, sowing is expected to continue till August-end across various states including Andhra, Telangana, Gujarat, Karnataka and Tamil Nadu. According to industry body Cotton Association of India (CAI), sowing has been completed on 112 lh as compared to 118 lh in the same period last year. In spot market, Cotton dropped by -30 Rupees to end at 27200 Rupees.Technically market is under short covering as market has witnessed drop in open interest by - 3.98% to settled at 5065 while prices up 220 rupees, now Cotton is getting support at 26810 and below same could see a test of 26600 levels, and resistance is now likely to be seen at 27190, a move above could see prices testing 27360.
Trading Idea for the day
Cotton trading range for the day is 26600-27360
Cotton gained tracking rise in ICE cotton amid concerns grew that harvest of the natural fiber crop could be delayed.
USDA’s weekly export sales report showed net sales of 149,300 running bales (RB) for the 2021/2022 marketing year.
Cotton sowing across the country has picked up with the revival of monsoon in several states.
COCUDAKL
Cocudakl yesterday settled down by -0.97% at 3059 as profit booking seen in market and weakness also seen due to weak oilseed prices. Prices rallied more than six percent last week supported by the tight supply situation in cottonseed is expected to continue in the coming months considering the stronger demand. Falling arrival numbers of raw cotton due to the lean supply season and thin stocks lying with ginners and farmers. The CAI has kept its consumption estimate for the current crop year at 330 lakh bale in the previous month. Further, downside look limited as support can be seen drop on yield as Maharashtra faces pink bollworm attack. The new season for cotton will start only in October. The probability of consumption of cotton cake shifting towards mixing in the animal feed rations has increased this year because of soy meal turning quite expensive over previous years. The all India sowing area of cotton had reached 86.45 lakh hectares. The acreage was 104.83 lakh hectares during the corresponding period of last year. Sowing will increase in coming weeks subject to improvement in the rainfall intensity in states of Gujarat/ Maharashtra/ Karnataka, Andhra Pradesh and Telangana. In Akola spot market, Cocudakl dropped by -10 Rupees to end at 3100 Rupees per 100 kgs.Technically market is under fresh selling as market has witnessed gain in open interest by 9.6% to settled at 52990 while prices down -30 rupees, now Cocudakl is getting support at 3032 and below same could see a test of 3005 levels, and resistance is now likely to be seen at 3095, a move above could see prices testing 3131.
Trading Idea for the day
Cocudakl trading range for the day is 3005-3131.
Cocudakl dropped as profit booking seen in market and weakness also seen due to weak oilseed prices.
In Rajasthan, Cotton sowing is done in 596.7 thousand hectares down by -11.4%.
Support seen as falling arrival numbers of raw cotton due to the lean supply season and thin stocks lying with ginners and farmers.
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