Cottonseed oilcake, or kapaskhali, futures are expected to trade up in the coming four to five months on rising domestic demand, analysts said. In the past 2-3 months, prices have firmed up by 25% to touch Rs 2,000 a quintal as on 9th February.
A protein source, cottonseed oil cake demand is largely in the dairy sector which consumes it for
animal feed. In summers, the requirement peaks up due to lack of availability of green grass. Fall in cotton production this year also led to firm prices. Traders say spot prices in Akola market in Maharashtra continued to be firm than the future market, indicating that in the long run prices would be firm.
“The inventories are less this year due to poor monsoon and pest infestation. I expect prices to further firm up by 200-300 a quintal till May-June,” said Chintan Jain an analyst with Samruddhi Commodities. At Akola, current prices are Rs 2,050 a quintal while in March future it is Rs 2,025 a quintal said traders.
“The inventories are less this year due to poor monsoon and pest infestation. I expect prices to further firm up by 200-300 a quintal till May-June,” said Chintan Jain an analyst with Samruddhi Commodities. At Akola, current prices are Rs 2,050 a quintal while in March future it is Rs 2,025 a quintal said traders.
In the beginning of the season in December, prices of the commodity were at Rs 1,600 a quintal, moving to Rs 2,250 till January. “Cotton ginning is low this year due to fall in production. We expect a deficit scenario in Sept-Oct,” said Biren Vakil, CEO of Paradigm Commodities.
Source : Economic Times
