Spot Cotton Oil Cake May Trade Range Bound Next Week

MUMBAI(Commoditiescontrol) – Cotton oilcake rose at the key Kadi market of Gujarat during the week ending 11, February amid improved demand.

Cotton oilcake declined by Rs 40 to Rs 2,285/100kg in Kadi on account of weak demand from cattle feed manufacturers and stockiest.

Prices witnessed rally of 12 percent in the month of January on back of firm demand from stockiest and cattle feed industry.

Now the stockiest purchasing have slowed down as they are anticipating cotton cake prices should fall by around Rs 50-75/100kg before rallying further.

On the other hand demand from cattle feed manufacturers has reduced by around 25 percent as most of the cattle feed manufacturers has shifted to other feed products which is available in the range of Rs 1500-1600/100kg. So cotton oil cake prices will not rally like last year.

Ginners were reluctant to sell cotton seed as they are anticipating the prices to edge higher in near term, but they might opt to dispose their stocks due to attractive rates, which may cap any major upside.

Further supply of cotton seed during the week has increased over last week due to which price of cotton seed will decline which will weigh on cotton cake prices also.

Price of Cottonseed in Kadi are trading in the range of Rs 2,625-2,650/100kg down by Rs 50 on previous session.

Due to fall in cotton seed prices disparity in crushing has reduced to Rs 450/MT from 600/MT which is still in higher negative territory.

Coming week cotton cake prices are likely to trade range-bound as there is demand for cotton oil cake on lower level whereas higher supply of raw material i.e. cottonseed will weigh on prices at higher level.