3.5 C
New York
Tuesday, November 30, 2021

Long liquidation seen in MCX Cotton

MCX Aluminium under long liquidation; Resistance seen at 143.3

MCX Mentha Oil likely to trade in a range of 1451.8-1554.8

Natural Gas market under short covering; Support seen at 192.8

Crude Oil expected to trade in a range between 4748-5160

Silver market under fresh selling; Support seen at 39085

Technically Cotton market is under long liquidation as market has witnessed drop in open interest by 4.99% to settled at 6460 while prices down 20 rupees.

Now MCX Cotton is getting support at 22570 and below same could see a test of 22430 level, And resistance is now likely to be seen at 22790, a move above could see prices testing 22870.

Cotton on MCX settled down by 0.09% at 22710 due to weak demand from traders and stockists at the spot market. Though, some losses were capped on anticipation of lower production from major producing belts due to reduction in crop acreage.

The domestic cotton acreage dipped 24% to 5.46 million hectare so far due to delay in rains in major cotton producing states like Maharashtra, Gujarat and Madhya Pradesh. Farmers in the country have sown cotton across 3.22 mln ha in the ongoing kharif season, down 30.2% from the year-ago period, according to data released by the farm ministry.

Planting of the crop was down in all the states barring Karnataka, Haryana, Punjab and Rajasthan, the data showed. In Maharashtra, the largest producer, the area under the fibre was down 49.6% on year at 626,000 ha, according to the data.

Acreage in Gujarat, another major grower, was down 51.2% on year at 242,000 ha mainly due to the delay in arrival of monsoon over the state. The sowing in major growing states such as Maharashtra, Gujarat and Telangana is expected to gather pace this week due to revival of the monsoon current.

India’s cotton production in 2017-18 (Jul-Jun) is estimated at 34.9 mln bales (1 bale = 170 kg), higher than 33.9 mln bales in the previous year, according to the government’s third advance estimate.

Trading Ideas:
–Cotton trading range for the day is 22430-22870.
–Cotton prices dropped due to weak demand from traders and stockists at the spot market.
–Though, some losses were capped on anticipation of lower production from major producing belts due to reduction in crop acreage.
–The domestic cotton acreage dipped 24% to 5.46 million hectare so far due to delay in rains in major cotton producing states.
–Cotton prices in spot market gained by 50.00 rupees and settled at 22970.00 rupees.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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