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CRUDEOIL

Cotton yesterday settled down by -2.8% at 45430 as the Cotton Association of India (CAI), is bullish about the sowing prospects this kharif season. “Sowing will increase by 12 per cent and go up to 133-135 lakh hectares from last year’s 120 lakh,” said Atul Ganatra, President, CAI. Ganatra further said the increase in acreage expansion will be the highest in Gujarat, the largest producer of the fibre, at around 20-25 per cent. In Karnataka, the cotton area till June 10, had doubled to over 1.21 lh compared with 0.59 lh in the previous year. Karnataka has set a target of 7.28 lh this year. Andhra Pradesh has also sharply raised the cotton acreage target to 6.11 lh for the current year over last year’s cropped area of 5.33 lh. Though the acreage under the fibre crop in Rajasthan, which stood at 4.72 lh till recently, is seen catching up, the overall area would be around 7 lh — lower than last year’s 7.66 lh. Rajasthan had set a target of 8 lh for the current year. India's annual monsoon rainfall has covered more than half of the country and conditions are favourable for it to advance into central, northern and western regions this week, the weather department said. In Karnataka, cotton acreages stood at 1.21 lakh hectares as of June 10 compared to 0.59 lakh ha in the same period last year. In spot market, Cotton dropped by - 430 Rupees to end at 46980 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -36.05% to settled at 1089 while prices down -1310 rupees, now Cotton is getting support at 44990 and below same could see a test of 44550 levels, and resistance is now likely to be seen at 46220, a move above could see prices testing 47010.

Trading Idea for the day

Cotton trading range for the day is 44550-47010.

Cotton dropped as Cotton acreage seen rising 12 per cent to 135 lakh ha despite drop in North

In Karnataka, cotton acreages stood at 1.21 lakh hectares as of June 10 compared to 0.59 lakh ha in the same period last year.

CAI lowers cotton crop estimate for current season

Cocudakl

Cocudakl yesterday settled up by 0.23% at 2645 on low level buying after prices dropped 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 - 42.6 Rupees to end at 2952.3 Rupees per 100 kgs.Technically market is under short covering as market has witnessed drop in open interest by -1.74% to settled at 83050 while prices up 6 rupees, now Cocudakl is getting support at 2617 and below same could see a test of 2588 levels, and resistance is now likely to be seen at 2666, a move above could see prices testing 2686.

Trading Idea for the day

Cocudakl trading range for the day is 2588-2686.

Cocudakl gained on low level buying 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.

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