Copper market under fresh selling; Support seen at 408.8
Natural Gas likely to trade between 185-194.8 levels
MCX Crude Oil may trade in a range between a 4538-4844
Silver market under fresh selling; Support seen at 37978
MCX Cardamom under long liquidation; Support seen at 1114.4
Technically Cotton market is under long liquidation as market has witnessed drop in open interest by 11.17% to settled at 4373 while prices down 220 rupees.
Now Cotton is getting support at 22300 and below same could see a test of 22170 level, And resistance is now likely to be seen at 22620, a move above could see prices testing 22810.
Cotton on MCX settled down by 0.97% at 22430 amid muted demand from domestic mills at the spot market. Though, some losses were capped due to anticipation of lower production from major producing belts.
Farmers in the country have sown cotton across 5.46 mln ha in the ongoing kharif season, down 24% from the year-ago period. In Maharashtra, the largest producer, the area under the crop was down 10.3% on year at 1.96 mln ha, according to the data.
It was, however, a whopping 212.6% higher from a week ago as sowing picked up pace due to good rains in parts of the state. Acreage in Gujarat, another major grower, was down 61.1% on year at 492,900 ha due to deficient rains.
As per Commerce ministry data, cotton exports in May surged by 27.6% to 5.7 lakh bales as compared to last year. Cotton acreage till last week was down by 14.7% on year to 77.5 lakh hac compared to 90.9 lakh ha las year, according to the farm ministry data.
FAS India forecasts marketing year 2018/19 cotton production at 28.7 million 480 lb. bales on 11.85 million hectares but cut its estimate for India’s cotton closing stocks in 2018-19 (Aug-Jul) to 14.07 mln bales (1 US bale = 218 kg) from 14.33 mln bales pegged earlier.
–Cotton trading range for the day is 22170-22810.
–Cotton prices dropped amid muted demand from domestic mills at the spot market.
–Though, some losses were capped due to anticipation of lower production from major producing belts.
–United States Department of Agriculture (USDA) trimmed India’s 2017-18 cotton output and ending stocks forecast.
–Cotton prices in spot market gained by 10.00 rupees and settled at 23230 rupees.
Courtesy: Kedia Commodities