Cotton trading range for the day is 28960-31400 - Kedia Advisory
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Cotton
Cotton yesterday settled up by 1.74% at 29870 because of threat regarding significant crop damage in the affected areas, in addition to possibility of harvest delays. The pink bollworm attack has been discovered in Bathinda district’s cotton farms in Punjab. The harvest in Punjab shall begin by next week. The recent developments regarding pink bollworm infestations in Punjab, Haryana and heavy rains in Madhya Pradesh and Maharashtra have started raising doubts regarding this season’s crop size. 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. Reports say that Sirsa, Fatehabad, Hisar, Mahendragarh, and Jind in Haryana, and Bathinda and Mansa in Punjab, are some of the districts affected by the pink bollworm infestation. The regions of Maharashtra and Madhya Pradesh are also reportedly affected adversely, from the heavy rains across the respective productive belts. The Haryana government directed all deputy commissioners to send reports regarding the recent damage to cotton crop due to heavy rains and waterlogging by October 15. In spot market, Cotton gained by 750 Rupees to end at 28020 Rupees.Technically market is under short covering as market has witnessed drop in open interest by -14.32% to settled at 2016 while prices up 510 rupees, now Cotton is getting support at 29420 and below same could see a test of 28960 levels, and resistance is now likely to be seen at 30640, a move above could see prices testing 31400
Trading Idea for the day
Cotton trading range for the day is 28960-31400.
Cotton prices gained because of threat regarding significant crop damage in the affected areas
The recent developments regarding pink bollworm infestations in Punjab, Haryana have started raising doubts regarding this season’s crop size.
The regions of Maharashtra and Madhya Pradesh are also reportedly affected adversely, from the heavy rains across the respective productive belts.
Cocudakl
Cocudakl yesterday settled up by 4.56% at 2614 amid tight supply situation in cottonseed is expected to continue in the coming months considering the stronger demand. However upside seen limited 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 gained by 44.15 Rupees to end at 2822.05 Rupees per 100 kgs.Technically market is under fresh buying as market has witnessed gain in open interest by 0.97% to settled at while prices up 114 rupees, now Cocudakl is getting support at 2541 and below same could see a test of 2467 levels, and resistance is now likely to be seen at 2668, a move above could see prices testing 2721.
Trading Idea for the day
Cocudakl trading range for the day is 2467-2721.
Cocudakl gained amid tight supply situation in cottonseed is expected to continue in the coming months considering the stronger demand.
However upside seen limited as crop seems to be in good condition after Gujarat received very good rainfall from last few days.
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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