Cotton trading range for the day is 27750-28850 - Kedia Advisory
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Cotton
Cotton yesterday settled down by -0.04% at 28140 as pared gains on profit booking after prices rose amid supply concerns, shipping constraints, and growing demand from top user China and other buyers like Turkey and Pakistan. Heavy rains are threatening crops in major US growing regions including Texas and the Mississippi Delta, while a pest called pink bollworm is rapidly spreading across fields. Meanwhile, the US Department of Agriculture said US cotton exports in 2020-21 were the highest in 15 years at 16.4 million bales. The commodity has surged nearly 50% in the past year amid projections for two straight world deficits through 2021-22. The pink bollworm attack on cotton crop in Punjab has been found to be much beyond earlier anticipated. Over one fourth area in biggest cotton growing districts of Bathinda and Mansa are disturbed on the count though earlier the attack was felt in around 10-15% area in these districts. Cotton procurement for 2021-22 kharif season should commence from the first week of November, Minister for Cooperation and Marketing Balasaheb Patil said. At a meeting, Patil took the stock of cotton cultivation in Maharashtra. He directed the department to start early cotton procurement from November first week to facilitate timely sale and income for farmers. In spot market, Cotton dropped by -70 Rupees to end at 27490 Rupees.Technically market is under fresh selling as market has witnessed gain in open interest by 4.64% to settled at 2009 while prices down -10 rupees, now Cotton is getting support at 27950 and below same could see a test of 27750 levels, and resistance is now likely to be seen at 28500, a move above could see prices testing 28850.
Trading Idea for the day
Cotton trading range for the day is 27750-28850.
Cotton pared gains on profit booking after prices rose amid supply concerns, and growing demand from China and other buyers like Turkey and Pakistan.
The pink bollworm attack on cotton crop in Punjab has been found to be much beyond earlier anticipated.
Heavy rains are threatening crops in major US growing regions including Texas and the Mississippi Delta
Cocudakl
Cocudakl yesterday settled down by -1.69% at 2507 as crop seems to be in good condition after Gujarat received very good rainfall from last few days. However downside seen limited amid tight supply situation in cottonseed is expected to continue in the coming months considering the stronger demand. 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 -23.55 Rupees to end at 2825.85 Rupees per 100 kgs.Technically market is under fresh selling as market has witnessed gain in open interest by 2.52% to settled at while prices down -43 rupees, now Cocudakl is getting support at 2482 and below same could see a test of 2457 levels, and resistance is now likely to be seen at 2546, a move above could see prices testing 2585
Trading Idea for the day
Cocudakl trading range for the day is 2457-2585
Cocudakl dropped as crop seems to be in good condition after Gujarat received very good rainfall from last few days.
However downside seen 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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