Suryaa Business Desk: Surya Commodity Desk, Mumbai: On the National Commodity and Derivatives Exchange (NCDEX), a domestic agricultural products derivative exchange, cottonseed wood... Surya Commodity Desk, Mumbai: Cottonseed Oil Cake / Kapasia Khali futures on the National Commodity and Derivatives Exchange (NCDEX), the domestic agricultural products derivative exchange, were on a winning streak. Along with the huge demand from the Cattle Feed manufacturing industries in the spot markets, traders are inclined to build fresh speculative bets with the expectations that the demand will increase further in the coming months.
Main reasons for price increase: Further buying by animal feed industries: As the demand for cottonseed wood from dairy and animal feed sectors continues to increase, processors and manufacturers are placing huge orders directly from the mandis. Building of new long positions: Aggressive buying by traders and increase in open interest has provided strong support to futures prices as bullish trend prevails on future delivery contracts. STABILITY OF SPOT MARKETS: Despite the start of cotton harvesting, low stocks of quality capsia kali and consumption demand outpacing steady supply from ginning mills led to price rally.
According to commodity market analysts, cottonseed oil cake prices are likely to move in a positive direction in the short term due to steady consumption from the dairy sector.
