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Cotton

Cotton yesterday settled up by 0.92% at 46120 as the USDA lowered its forecasts for global cotton supplies in 2022/23, as smaller beginning stocks more than offset a 2.6-million-bale increase in production. The Spinners' Association of South India has announced the closure of the mills, due to which most of the smaller mills have closed down and the demand for cotton will be seen to decrease due to decrease in production in the big mills. In North India's states of Punjab, Haryana and Rajasthan, the water from canals will be released late, which will lead to late sowing of cotton, but there is no report of the possibility of very low sowing. Cotton sowing in North India is expected to increase by 15% from last year. Texas, had concerns about production due to lack of rainfall, but with good rainfall in Texas for the past one week, there is no problem with U.S. cotton production. Cotton sowing in China has increased, but with only one to two percent increased, the crop is unlikely to grow much. Similarly, in Pakistan, production is also expected to increase due to increase in sowing from last year. In spot market, Cotton dropped by -1100 Rupees to end at 47750 Rupees.Technically market is under short covering as market has witnessed drop in open interest by - 1.61% to settled at 2876 while prices up 420 rupees, now Cotton is getting support at 45770 and below same could see a test of 45430 levels, and resistance is now likely to be seen at 46390, a move above could see prices testing 46670.

Trading Idea for the day

Cotton trading range for the day is 45430-46670.

Cotton gained as the USDA lowered its forecasts for global cotton supplies in 2022/23 and smaller beginning stocks

Cotton sowing in North India is expected to increase by 15% from last year

The Spinners' Association of South India has announced the closure of the mills, due to which most of the smaller mills have closed down

Cocudakl

Cocudakl yesterday settled down by -1.27% at 2802 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 dropped by -28.05 Rupees to end at 3031.35 Rupees per 100 kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -4.97% to settled at while prices down -36 rupees, now Cocudakl is getting support at 2778 and below same could see a test of 2755 levels, and resistance is now likely to be seen at 2835, a move above could see prices testing 2869.

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