MUMBAI(Commoditiescontrol) – Cotton Oil Cake price were steady at benchmark Kadi market amid limited demand during the week ending 1, April.
Cotton oil cake price were steady at Rs 2,175/100kg in Kadi during the week on account of limited demand from cattle feed manufacturer and stockiest and also the trade volume was low as most of the traders were in busy in financial year closing work.
A trader from Kadi said that stockiest are holding a huge quantity of stock with them as they were unable to offload the stock which they bought during September to December period due to below expectation of prices from January to March period.
Now stockiest wants to first offload the previous stock after that only they will think of buying cotton cake at current level.
Most of the stockiest are anticipating that if cotton oil cake prices drops by around Rs 25-50/100kg then only they will start purchasing the commodity from market.
On the other hand demand from cattle feed manufacturer is as per requirement and most of the cattle feed manufacturers have shifted to other feed alternatives which are available in the range of Rs 1,300-1,500/100kg.
Demand from cattle feed manufacturer of cotton oil cake may not increase at higher level as there input cost will increase and they may incur loss so they are likely to buy on correction which will provide support to prices at lower level.
While prices of substitutes such as guar churri, pulses churri, and rape mustard seed meal, among others, do have some bearing on the demand of cottonseed oilcake as they are available at a far cheaper rate than cotton oil cake, this year they are considered as big movers of cotton cake price. However cotton oil cake is a unique product and only a portion of the consumption shifts to other substitutes.
Ginners are also holding a good quantity stock of cotton seed as they did not get the prices they were anticipating and crushing of cotton seed is also in huge disparity due to which demand from crushers is subdued and likely to remain lower in coming months.
If cotton oil cake price increases substantially then only demand of cotton seed from crushers is likely to improve.
Price of Cottonseed in Kadi are trading in the range of Rs 2,400-2,450/100kg down unchanged on previous week.
Coming week cotton cake prices are likely to trade rangebound as there is demand for cotton oil cake on lower level whereas higher supply of raw material i.e. cottonseed and lackluster demand from cattle feed manufacturer will weigh on prices at higher level.
(By Commoditiescontrol Bureau; +91-22- 40015516)
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