Spot Cotton Oil Cake May Trade Range Bound Next Week

MUMBAI(Commoditiescontrol) – Cotton oilcake declined at benchmark market Kadi amid fragile demand during the week ending 18, February.

Cotton oil cake price declined by Rs 65 to Rs 2,220/100kg in Kadi on account of weak demand from cattle feed manufacturer and stockiest.

The stockiest purchasing have slowed down as they were anticipating cotton cake prices may fall by around Rs 75-100/100kg before rallying further.

Now the prices have declined by Rs 125/100kg in last two weeks as the stockiest has booked their profits for the stock they bought around Rs 2,100-2,200/100kg.

Coming week stockiest might once again start buying cotton oil cake around Rs 2,180-2,200/100kg for the short term gain.

The strategy of the stockiest is to buy on dip and liquidate the stock when price goes up by Rs 100-150/100kg because they think that prices are unlikely to rally like last year.

On the other hand demand from cattle feed manufacturer has reduced by around twenty five percent as most of the cattle feed manufacturer has shifted to other feed products which are available at Rs 1500-1600/100kg which is weighing on cotton oil cake prices.

This season supply of cotton seed during October-January period was less compared to last year’s same period so the price of cotton oil cake has rallied till January month.

From February on wards ginners liquidated cotton seed as the supply has increased in February month which is weighing on cotton oil cake prices.

Price of Cottonseed in Kadi are trading in the range of Rs 2,525-2,550/100kg down by Rs 100 on previous session.

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 will weigh on prices at higher level.