IGI Logo

Cotton

Cotton yesterday settled down by -3% at 41450 as Cotton sowing gained by nearly 3.8% to 64.08 lakh hectares in 2022 against an area sown of 61.73 lakh hectares in 2021. Pressure also seen on profit booking as growing recessionary fears raised prospects of lower demand. The United States Department of Agriculture's report showed that 37% of the cotton crop was in a good-toexcellent 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. Speculators cut net long position in cotton futures by 1,485 contracts to 42,786 in the week to June 21, data from the Commodity Futures Trading Commission showed. Cotton sowing fall nearly 14.76% with 31.83 lakh hectares of area sown against area of 37.37 lakh hectares in 2021. There is a rush among farmers in Gujarat for sowing cotton in anticipation of good returns. Kharif cotton sowing for the season in Gujarat is likely to increase by at least 15% compared to the previous season amid a rush to sow the crop well ahead of its schedule. Farmers had got good prices for cotton in domestic and international markets last season. In spot market, Cotton dropped by -530 Rupees to end at 44940 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -3.1% to settled at 1534 while prices down -1280 rupees, now Cotton is getting support at 40790 and below same could see a test of 40130 levels, and resistance is now likely to be seen at 42440, a move above could see prices testing 43430.

Trading Idea for the day

Cotton trading range for the day is 40130-43430.

Cotton dropped as Cotton sowing gained by nearly 3.8% to 64.08 lakh hectares in 2022 against an area sown of 61.73 lakh hectares in 2021.

Pressure also seen on profit booking as growing recessionary fears raised prospects of lower demand.

Speculators cut net long position in cotton futures by 1,485 contracts to 42,786 in the week to June 21, data from the CFTC showed

Cocudakl

Cocudakl yesterday settled up by 0.19% at 2653 on short coverinng after prices 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 -9.15 Rupees to end at 2825.2 Rupees per 100 kgs.Technically market is under short covering as market has witnessed drop in open interest by -4.47% to settled at 59820 while prices up 5 rupees, now Cocudakl is getting support at 2610 and below same could see a test of 2568 levels, and resistance is now likely to be seen at 2687, a move above could see prices testing 2722.

Trading Idea for the day

Cocudakl trading range for the day is 2568-2722.

Cocudakl gained on short coverinng after 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

To Read Complete Report & Disclaimer Click Here

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer