Cotton trading range for the day is 28620-31440 - Kedia Advisory
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Cotton
Cotton yesterday settled up by 0.17% at 29920 as heavy rain coupled with strong winds damaged cotton crop in Bathinda and Mansa districts. Farmers said they were already suffering due to the pink bollworm attack and the bad weather would hit them further as the harvest would be delayed. They are worried as Combine Harvesters are not suited to harvest flattened crop. The higher moisture content in the crop, too, is another cause for concern for the farmers now. The untimely rain will delay wheat-sowing as well. Textile exports from India have surged as companies rush to tap the increased demand for cotton and yarn across the world amid a decline in supplies from China. Exports of cotton yarn grew 5.5 percent to about 1 million tonnes during FY21 and shipments spiked by about 60 percent to 448,000 tonnes during April-July this year. High demand for cotton and the supply shortfall have also led to a spike in cotton prices, which are at a decade high globally. In earlier forecasts, the US Department of Agriculture (USDA) and the Cotton Corporation of India (CCI) have come out with a better harvest versus previous year. Cotton is grown around 4.8 lakh hectares in the state of Punjab. In spot market, Cotton gained by 200 Rupees to end at 28220 Rupees.Technically market is under fresh buying as market has witnessed gain in open interest by 3.72% to settled at 2091 while prices up 50 rupees, now Cotton is getting support at 29270 and below same could see a test of 28620 levels, and resistance is now likely to be seen at 30680, a move above could see prices testing 31440.
Trading Idea for the day
Cotton trading range for the day is 28620-31440
Cotton prices gained as heavy rain coupled with strong winds damaged cotton crop in Bathinda and Mansa districts.
Textile exports from India have surged as companies rush to tap the increased demand across the world amid a decline in supplies from China
High demand for cotton and the supply shortfall have also led to a spike in cotton prices, which are at a decade high globally
Cocudakl
Cocudakl yesterday settled down by -1.76% at 2568 as crop seems to be in good condition after Gujarat received very good rainfall from last few days. However downsidee 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 -13.75 Rupees to end at 2808.3 Rupees per 100 kgs.Technically market is under fresh selling as market has witnessed gain in open interest by 3.37% to settled at while prices down -46 rupees, now Cocudakl is getting support at 2550 and below same could see a test of 2532 levels, and resistance is now likely to be seen at 2598, a move above could see prices testing 2628.
Trading Idea for the day
Cocudakl trading range for the day is 2532-2628.
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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