Cotton trading range for the day is 39610-42170 - Kedia Advisory
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Cotton
Cotton yesterday settled down by -0.24% at 40780 as pressure seen after reports Cotton sowing in Rajasthan witnessed a gain of 8.11% with 598.14 thousand hectares as against 553.26 thousand hectares on the same day last year. Cotton sowing in Gujarat fall by nearly -6% with 1,556,683 hectares against sown area of 2021 which was 1,650,463 hectares. India has extended deadline to import cotton without paying import taxes until Oct. 31 from the earlier cut-off date of Sept. 30, the government said in a notification, as the sowing of the fibre crop delayed in some regions due to patchy monsoon rainfall. The world's biggest producer of the fibre had allowed duty free imports in April after local prices jumped to a record high because of a drop in the production and following rally in global prices. The United States Department of Agriculture's report showed that 37% of the cotton crop was in a good-to-excellent condition in the week ending June 26. That compares with 52% for the same period a year ago. Meanwhile, heavy rain will be possible along portions of the Texas coast later this week, the U.S. National Hurricane Center said. There is a rush among farmers in Gujarat for sowing cotton in anticipation of good returns. In spot market, Cotton gained by 130 Rupees to end at 44270 Rupees.Technically market is under fresh selling as market has witnessed gain in open interest by 4.38% to settled at 1714 while prices down -100 rupees, now Cotton is getting support at 40190 and below same could see a test of 39610 levels, and resistance is now likely to be seen at 41470, a move above could see prices testing 42170.
Trading Idea for the day
Cotton trading range for the day is 39610-42170.
Cotton dropped as pressure seen after reports Cotton sowing in Rajasthan witnessed a gain of 8.11%
Cotton sowing in Gujarat fall by nearly -6% with 1,556,683 hectares against sown area of 2021 which was 1,650,463 hectares
India extends deadline for duty free cotton imports to Oct. 31
Cocudakl
Cocudakl yesterday settled down by -0.38% at 2626 as price of other cattle feeds being lower than the price of cottonseed oilcake, all the consumers have created a mindset to shift towards other cattle feeds. Global cottonseed production is projected at 44.1 million tons, up 3 percent, with gains in China, India, Turkey, and Uzbekistan. Cottonseed exports are forecast down nearly 2 percent, while crush is projected to grow 3 percent. Cottonseed oil trade is forecast to decline on lower export projections for the United States due to higher domestic demand. The new season for cotton is expected to be good. Retailer expects slight decline in dairy demand as supply uncertainties remain. Further pressure seen as Dairy farmers have demanded a hike in milk price in the midst of rising production cost, and the government has convened a meeting of farmers and farmers’ representatives in Thiruvananthapuram on May 10. Milk procurement prices have been rising, prompting higher revenues for dairy companies but also leading to pressure on margins in FY2023-24, according to a report. The new season for cotton is expected to be good for farmers as the market price of the fiber is currently more than MSP. Pressure seen in cotton also amid expectations of higher supply from the US and lower global demand. In Akola spot market, Cocudakl dropped by -17.55 Rupees to end at 2792.35 Rupees per 100 kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -5.73% to settled at 52940 while prices down - 10 rupees, now Cocudakl is getting support at 2610 and below same could see a test of 2595 levels, and resistance is now likely to be seen at 2647, a move above could see prices testing 2669.
Trading Idea for the day
Cocudakl trading range for the day is 2595-2669.
Cocudakl prices dropped as the price of other cattle feeds being lower, all the consumers have created a mindset to shift
Global cottonseed production is projected at 44.1 million tons, up 3 percent
Cottonseed exports are forecast down nearly 2 percent, while crush is projected to grow 3 percent.
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