Spot Cottonseed Oil Cake To Trade Range Bound Next Week



Spot Cottonseed Oil Cake To Trade Range Bound Next Week

20 May 2017 10:46 am

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MUMBAI(Commoditiescontrol) – Spot Cotton oil cake market exhibited a steady tone in the week ended May 20 due to limited demand from cattle feed manufacturer. Cotton oil cake price ruled flat at Rs 1,990/100kg in benchmark Kadi market.

In most of the markets cotton oil cake prices ruled flat from start of the week on account of limited demand from cattle feed manufacturer and also the stockiest were not active in liquidating the stock of commodity as price they are getting is very low.

Stockiest are holding huge quantity of stock which they procured in October to December period as they have not got the desired rates till date.

Cotton oil cake futures followed the trend of physical market. Cottonseed oil cake June futures prices during the week on NCDEX has gained marginally by 0.80 percent to close at Rs 1,959/100kg and however contract made a fresh four month low of Rs 1,911/100kg on May 16.

Cotton oil cake price in spot markets have declined by nearly 15 percent in last three months so there are chances that demand from cattle feed manufacturer may improve to add stock to their inventory.

Most of the cattle feed manufacturer have covered their near term requirement but for long term they are still looking for lower prices.

Meanwhile, the major factor which is weighing on the market sentiment is the on-going sowing progress which has reached 60% of the total target area in Haryana and 70% in Punjab.

Following is the cotton sowing report received from the State Agriculture Department:

Expectation of higher production amid rise in sowing acreage in 2017-18 has limited any further gains in the market in past few sessions.

If cotton production increases then the availability of raw material i.e. cotton seed is likely to increase which will weigh on cotton oil cake prices.

The other factor which the stockiest and traders are closely watching is the arrival time of monsoon.

If monsoon is delayed then only the price of cotton oil cake may increase sharply but if the monsoon is on time which will increase the availability of green grass during rainy season which will further reduce the demand of cotton oil cake from cattle feed manufacturer due to which new bear trend of cotton oil cake will start.

Ginners are also not getting the desired price for cotton seed so they have stopped the selling of cotton seed and also the the demand from processors is limited due to poor off take of cotton oil and cotton oil cake.

Price of Cottonseed in Kadi are trading in the range of Rs 2,100-2,150/100kg unchanged on previous week.

Coming week cotton oil cake prices may trade range bound as demand from cattle feed manufacturer at lower level may support prices whereas selling by stockiest at higher level will weigh on prices.

(By Commoditiescontrol Bureau; +91-22- 40015516)

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