Rise in Cotton Oil Cake Prices: The price of Cotton Oil Cake has been consistently rising, recently surpassing the ₹3400 mark.
Delayed Production: This year, early cotton sowing in North India and Maharashtra’s Khandesh region has been lower than usual. These areas are typically known for early arrivals of new-season cotton, but this year, due to delayed planting and lower yields, production is expected to decrease. Additionally, the new crop is likely to arrive a month later than anticipated.
Seed Shortage: Farmers are facing challenges due to a shortage of high-quality seeds.
High Demand, Low Supply in Cotton Market
The demand for cotton remains high, while the supply is limited, driving up prices.
Future Outlook: The market is expected to see further increases over the next 20-25 days.
NCDEX Cotton Oil Cake: On NCDEX, the spread between September and December contracts for Cotton Oil Cake has widened to ₹452. The September contract is currently in an overbought condition.
Overbought Condition: The September contract’s overbought status indicates heavy buying pressure, which could soon lead to a price correction.
Profit Booking: It may be wise to book some profits in the September contract, as prices could drop suddenly due to the overbought situation.
Technical Analysis: It is recommended to sell the September Cotton Oil Cake contract at ₹3380, with a stop loss at ₹3430 and targets of ₹3320 and ₹3280.
Disclaimer: This information is provided for informational purposes only and should not be considered investment advice. Please consult with a professional before making any investment decisions.
