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Cottonseed Oil Cake Tanks 30% In 2 Months

27 Feb 2020 4:58 pm
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Mumbai (Commodities Control) – Weak demand and oversupply has led to crash fall in cottonseed cake prices that dipped 30% in a period of two months. Availability of cheaper animal fodder and a massive mustard crop weighed upon the oilseed cake.

Cottonseed oil cake is priced at Rs 1650-1950/100Kgs across markets in Maharashtra today, while it was quoted above Rs 2500, in Akola, two months back. NCDEX March contract of Cocud is trading close to Rs 1512/Quintal; 34% lower than its trading price 2 months back.


Cottonseed cake prices were firm, until the fag-end of 2019, due to supply shortage. Delayed arrivals, due to rains in the last quarter of 2019, in the producing belts of Gujarat, Maharashtra and M.P. took cocud prices northward. The unseasonal rains affected the quality leading to sharp rise in prices.

Cottonseed oil cake is used as animal fodder. Kapas holds nearly 65% seed which can generate about 11% of cottonseed oil. Roughly 80% of cottonseed cake is obtained out of it.

With a bumper cotton crop in the country this year, there will be ample supply of cottonseed cake in the markets.

Traders are of the opinion that availability of cheaper crushed pulses as fodder, demand of cottonseed cake took backseat. While other oilseed cakes, such peanuts, are in demand. While mustard seed cake will be another cheaper option available, with arrivals of new mustard crop, post March. These factors will most likely keep a cocud prices suppressed for a few months now.

NOTE: The target of Rs 1525 in the short side of Cocud March Contract, given by commoditiescontrol.com, has been achieved.

(Commodities Control Bureau)


       
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