Cotton trading range for the day is 44330-46630 - Kedia Advisory
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Cotton
Cotton yesterday settled down by -2.14% at 45290 as Cotton planting in India could jump as much as 15% in 2022 to an all-time high, as strong prices prompt farmers to switch away from other crops. A 15% rise in India's cotton crop area would lift it to around 13.8 million hectares in 2022 from 12 million hectares last year. India’s cotton sowing acreage declined 2.35 per cent to 10.73 lakh hectare till June 3 this season, according to the first weekly Kharif 2022 sowing report, released by the ministry of agriculture. Currently, sowing in Karnataka & Northern states of Haryana, Punjab and Rajasthan recorded slow progress. Cotton was sown on around 13.08 lakh hectare during the corresponding period of last year. The area coverage has been reported mainly from the states of Haryana (5.90 lakh ha), Punjab (2.31 lakh ha), Rajasthan (1.54 lakh ha) and Karnataka (0.72 lakh ha). Cotton sowing is delayed in Punjab, Haryana and Rajasthan due to delay in release of canal water. Normally, the sowing should have been completed till mid of May, but large number of farmers could not sow the fibre crop during the sowing period. As per information, farmers have shifted to other crops as delayed cotton sowing is prone to disease. In spot market, Cotton dropped by -180 Rupees to end at 47090 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -1.11% to settled at 2586 while prices down -990 rupees, now Cotton is getting support at 44810 and below same could see a test of 44330 levels, and resistance is now likely to be seen at 45960, a move above could see prices testing 46630.
Trading Idea for the day
Cotton trading range for the day is 44330-46630.
Cotton dropped as Cotton planting in India, could jump as much as 15% in 2022 to an all-time high
India’s cotton sowing acreage declined 2.35 per cent to 10.73 lakh hectare till June 3 this season
A 15% rise in India's cotton crop area would lift it to around 13.8 million hectares in 2022 from 12 million hectares last year.
Cocudakl
Cocudakl yesterday settled down by -0.49% at 2856 due to the 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 gained by 28.6 Rupees to end at 3074.75 Rupees per 100 kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -12.51% to settled at while prices down -14 rupees, now Cocudakl is getting support at 2830 and below same could see a test of 2804 levels, and resistance is now likely to be seen at 2900, a move above could see prices testing 2944.
Trading Idea for the day
Cocudakl trading range for the day is 2804-2944.
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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