Spot Cottonseed Oil Cake To Trade With Bullish Bias



Spot Cottonseed Oil Cake To Trade With Bullish Bias

17 Jun 2017 11:45 am

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MUMBAI(Commoditiescontrol) – Spot Cotton oil cake market exhibited a bullish tone in the week ended June 17 on account of improved demand from cattle feed manufacturer. Cotton oil cake price gained by Rs 80 to trade at Rs 1,840/100kg in benchmark Kadi market.

In most of the markets cotton oil cake prices rallied sharply during the week on account of improved demand from cattle feed manufacturer as temperatures have declined in most of the parts of India so consumption has increased.

The most important factor which has changed the market sentiment from bearish to bullish is the slow progress of monsoon.

The India Meteorological Department had initially estimated on May 30 that the monsoon would advance at a faster pace than normal. However, the monsoon has remained stationary for three days over central India.

The southwest monsoon has now reached Bihar through the north-eastern districts on Friday bringing a smile on the faces of tillers hoping for timely kharif (monsoon) crop cultivation and residents reeling under sultry conditions.

The Patna Meteorological Centre made an official declaration of onset of monsoon in the state in the afternoon categorising it as "marginal" delay. The normal date for expected entry of rain-bearing clouds is June 10 and the Met office considers a margin of 1-7 days for categorising the onset as 'marginally delayed".

If progress of monsoon would have been on time then green grass would have been be available by 1st week of July but now the monsoon has delayed in central and northern parts of India which will result in late availability of green grass.

Most of the cattle feed manufacturer demand shifts to green grass during monsoon season.

On the other hand stockiest are still holding huge quantity of stock and it is likely they will liquidate the stock at higher prices in coming days which may cap the gains in cotton oil cake.

Cotton oil cake futures followed the trend of physical market. Cottonseed oil cake July futures prices during the week on NCDEX has gained by 3 percent to close at Rs 1,747/100kg.

Meanwhile, the other factor which is might pampered market sentiment if monsoon progress improves is the on-going sowing progress which has increased by 26% over last year in Haryana, 51.59% in Punjab and 20.21% in Rajasthan.

Most of the traders are keeping a close watch on progress of monsoon then sowing progress figures. Even if cotton area increases but distribution of rainfall is not proper then it will affect the yield of the crop.

So traders for next ten days are very bullish on cotton oil cake prices.

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

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