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Cotton

Cotton yesterday settled down by -0.4% at 46740 as sowing could accelerate as the monsoon's progress will help farmers. 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 several parts of Karnataka, including Chamrajanagar, Haveri and Gadag districts, the longstaple variety of cotton is planted early in the season, where farmers have brought in more area under the fibre crop. Cotton Association of India (CAI) on Saturday reduced its estimate for the cotton crop output for the current season beginning October 2021 to 315.32 lakh bales of 170 kg each, 8.31 lakh bales lower from its previous projection. In the year-ago season (2020-21), the country's total cotton production stood at 353 lakh bales, CAI (Cotton Association of India) said in its latest estimate for the month of May this year. Giving state-wise estimates, CAI said the production in Gujarat is projected at 79.75 lakh bales for the 2021-22 season. Telangana is estimated to produce 35.40 lakh bales, while the outputs in Maharashtra and Karnataka are estimated at 77.50 lakh bales and 20.25 lakh bales, respectively. In spot market, Cotton dropped by -110 Rupees to end at 47490 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -19.97% to settled at 1703 while prices down - 190 rupees, now Cotton is getting support at 46560 and below same could see a test of 46380 levels, and resistance is now likely to be seen at 46960, a move above could see prices testing 47180.

Trading Idea for the day

Cotton trading range for the day is 46380-47180.

Cotton prices dropped as sowing could accelerate as the monsoon's progress will help farmers.

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 down by -1.93% at 2639 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 gained by 10.4 Rupees to end at 2994.9 Rupees per 100 kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -4.49% to settled at 84520 while prices down -52 rupees, now Cocudakl is getting support at 2606 and below same could see a test of 2572 levels, and resistance is now likely to be seen at 2700, a move above could see prices testing 2760.

Trading Idea for the day

Cocudakl trading range for the day is 2572-2760.

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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