MUMBAI (Commoditiescontrol) - Spot cotton oil cake declined by nearly 30%, trading at fresh five month low of Rs 1,500/100kg in this week. Cotton oil cake was largely pressured by weak demand from cattle feed manufacturers and prospects of production to rise next season amid expected increase in acreage of the cotton seed.
.jpg)
Going forward, if the demand for this commodity do not pick up in next ten days, then there could be increased pressure on the Stockiest holding huge quantities to offload their stocks.
Market expects a short term correction in demand with some fresh buying to come up by the feed millers as it is trading at 5 month lows and price is in the range of other feed substitues such as Chana churi, Guar churi and Bajara churi which is available in the range of Rs 1,300 - 1,500 / 100 Kgs.
Moreover, Indian Cotton planting is ahead 7% from normal area as on date and crop condition is good across India.
.bmp)
Cotton planting reached 114.34 lakh ha as of August 3 compared to same period last year at 96.48 lakh ha according to Ministry of Agriculture.
Cotton planting has progressed 93.4 percent of the total normal area at 122.46 lakh ha and remained significantly ahead 7 percent from the normal area as on date at 106.75 lakh ha showing signs of positivity in planting.
Reports from the field suggest that crop conditions were rated superior in North India with expectation of bumper crop for the 2017/18 season.
Further the new cotton crop of 2017-18 will start arriving in the market yards of Punjab and Haryana in first week of September which will increase the supply of raw material i.e. cotton seed.
Conclusion
Surge in demand will give positive momentum to cotton oil cake prices which will be temporary phenomenon and may give some boost to prices for the near term. However, once the new crop cottonseed arrivals sets in we may see further downtrend.
(By Commoditiescontrol Bureau; +91-22-40015533
0 Comments 
Post Comment 
