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Monday, July 4, 2022

MCX Cotton under fresh selling; Resistance seen at 24226

Natural gas market under fresh selling; Support seen at 188.5

MCX Zinc under fresh selling; Resistance seen at 173.5

Crude Oil market under long liquidation; Support seen at 4590

MCX Nickel under fresh selling; Support seen at 898.8

Silver market under fresh selling; Support seen at 37820

Technically Cotton market is under fresh selling as market has witnessed gain in open interest by 1.23% to settled at 3943 while prices down 30 rupees.

Now MCX Cotton is getting support at 23926 and below same could see a test of 23763 level, And resistance is now likely to be seen at 24226, a move above could see prices testing 24363.

Cotton on MCX settled down by 0.12% at 24090 due to weak demand and expectation of higher imports. The United States, the top exporter of the natural fiber, and China, the biggest consumer, would resume negotiations to defuse a trade war after which China is expected to import more fibre from US.

The US, China’s top overseas supplier, shipped more than 500,000 tons of cotton to China last year, statistics from the China Textile Information Centre and the US Department of Agriculture (USDA) showed, constituting 44% of China’s cotton imports.

Cotton Advisory Board (CAB) estimated India’s cotton export to increase by 20% over last year and is expected to touch 7 million bales by September, 2018, a release from the Press Information Bureau said.

From October 2017 to April 2018, the total amount of cotton exported from India was 5.121 million bales. CAB has estimated that the cotton production for the current cotton season will be 37 million bales.

Cotton acreage till last week was down by 8% on year to 10.25 million hectares compared to 11.14 million hectares last year, according to the farm ministry data. India’s cotton closing stocks in 2018-19 between Aug-Jul were 14.07 million bales from 14.33 million bales pegged earlier. Cotton inventory for year 2017-18 may fall up to 2-2.2 million bales, lowest level in recent years.

Trading Ideas:
–Cotton trading range for the day is 23763-24363.
–Cotton prices dropped due to weak demand and expectation of higher imports.
–CAB estimated India’s cotton export to increase by 20% over last year and is expected to touch 7 million bales by September, 2018.
–India’s cotton closing stocks in 2018-19 between Aug-Jul were 14.07 million bales from 14.33 million bales pegged earlier.
–Cotton prices in spot market dropped by 20.00 rupees and settled at 23240.00 rupees.

Courtesy: Kedia Commodities              

Source: Commodityonline.com

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