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Cotton

Cotton yesterday settled down by -1.24% at 49350 on profit booking after reports Union Textiles Minister Piyush Goyal is going to hold a meeting with the stakeholders of the cotton industry to give relief to the textile industry. Cotton, textile and yarn industries and other stakeholders of the industry will be present in this meeting. According to the information, in this meeting, the Textile Minister will discuss many issues including giving relief to the textile industry, controlling the ever-increasing prices and reducing the duty. However earlier in the day, prices rallied to all time high amid rising demand and possibly lower supplies. The USDA in its latest report lowered U.S. production by one million bales as the drought situation in Texas is predicted to reduce harvested acres. At the same time, global supplies in 2022/23 are projected below a year earlier, as smaller beginning stocks more than offset a 2.6-million-bale increase in production, with consumption and ending stocks also lower. Global supplies in 2022/23 are projected below a year earlier, as lower beginning stocks more than offset a 2.6- million-bale increase in production, with consumption and ending stocks also lower, the USDA said. Global production is lowered 1.8 million bales from last month, largely due to a drop of 1.0 million bales from India. In spot market, Cotton gained by 790 Rupees to end at 50280 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -15.83% to settled at 2271 while prices down -620 rupees, now Cotton is getting support at 48730 and below same could see a test of 48100 levels, and resistance is now likely to be seen at 50160, a move above could see prices testing 50960.

Trading Idea for the day

Cotton trading range for the day is 48100-50960.

Cotton trading range for the day is 48100-50960.

However earlier in the day, prices rallied to all time high amid rising demand and possibly lower supplies

USDA in its latest report lowered U.S. production by one million bales as the drought situation in Texas is predicted to reduce harvested acres

Cocudakl

Cocudakl yesterday settled down by -0.35% at 2855 after update that 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 its latest April report, the USDA increased the global cotton production forecast in 2021-22 to 120.2 million bales, compared to 119.9 million bales in Feb 2022. In Akola spot market, Cocudakl dropped by -20.2 Rupees to end at 3066.05 Rupees per 100 kgs.Technically market is under fresh selling as market has witnessed gain in open interest by 1.1% to settled at while prices down -10 rupees, now Cocudakl is getting support at 2836 and below same could see a test of 2818 levels, and resistance is now likely to be seen at 2873, a move above could see prices testing 2892.

Trading Idea for the day

Cocudakl trading range for the day is 2818-2892.

Cocudakl dropped after update that 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.

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