MCX Mentha Oil likely to move in a range of 1258-1289.6
MCX Aluminium may trade between 138.1-140.1 levels
NCDEX Chana under long liquidation; Resistance seen at 4001
MCX Nickel likely to move in a range of 1205.6-1243
MCX Zinc under fresh selling; Resistance seen at 185.2
Technically Cotton market is under short covering as market has witnessed drop in open interest by 1.85% to settled at 1699 while prices up 140 rupees.
Now MCX Cotton is getting support at 19580 and below same could see a test of 19430 levels, and resistance is now likely to be seen at 19830, a move above could see prices testing 19930.
Cotton on MCX settled up by 0.71% at 19730 on short covering after prices dropped on diminishing demand due to weak trend in the yarn market.
However, on year the increase is 11% because of higher acreage, said USDA. Higher production is based on improved weather conditions in cotton areas of Gujarat and Maharashtra, report added.
USDA estimated cotton acreage at 127 lakh hectares and predicted average yield at 506 kilogram per hectare, up 10% compared to last year.
According to the Ministry of Agriculture, 2019-20 Kharif Cotton sowing was up by 6 per cent at 124.90 lakh hectare as against 117.66 lakh hectare during the same period last year.
As per market sources, the attack of pink bollworm has hit the surrounding regions of Yavatmal district in Akola, Nanded, few parts of Amravati.
However, still the crop is in last stage of vegetative phase therefore less threat to the crop. Due to heavy rainfall and insect infestation may contribute 10-20 per cent loss in production overall in the state as of now.
–Cotton trading range for the day is 19430-19930.
–Cotton prices gained on short covering after prices dropped on diminishing demand due to weak trend in the yarn market.
–USDA has raised India’s 2019-20 cotton crop production to 295 lakh bales in its September estimates from 290 lakh bales in August.
–USDA estimated cotton acreage at 127 lakh hectares and predicted average yield at 506 kilogram per hectare, up 10%.
–Cotton prices in spot market gained by 70.00 rupees and settled at 20240.00 rupees.
Courtesy: Kedia Commodities