19 C
New York
Wednesday, August 17, 2022

MCX Cotton market under short covering; Support seen at 22736.6

Aluminium market under short covering; Support seen at 146.2

Nickel market under fresh selling; Resistance seen at 896.6

MCX Zinc under fresh selling; Support seen at 172.8

MCX Cardamom under fresh buying; Support Seen at 1438.4

NCDEX Jeera under fresh selling; Resistance seen at 19555

Technically Cotton market is under short covering as market has witnessed drop in open interest by 3.14% to settled at 3760 while prices up 150 rupees.

Now MCX Cotton is getting support at 22736.6 and below same could see a test of 22533.3 level, And resistance is now likely to be seen at 23066.6, a move above could see prices testing 23193.3.

Cotton on MCX settled up 0.66% at 22940 on short covering after prices dropped on reports of improvement in acreage and lesser pest attacks in Maharashtra coupled with good crop condition of cotton in main cotton growing states.

Moreover, China cancels import of up to 200,000 bales of India new crop cotton due to fall in International prices. China is more keen to import cotton from Brazil in case of US-China trade war. Brazil may become the second largest exporter of cotton displacing Indian to third position.

In India, cotton acreage till last week was down by 1.9 % on year to 117.7 lakh hac compared to 119.9 lakh ha last year, according to the farm ministry data. The USDA’s FAS has projected India’s cotton production to decline 1.7% on year to 365 lakh bales (1 bale = 170 kg) due to delay in monsoon rains and fall in acreage.

Standing cotton crop in north India – Haryana, Punjab and Rajasthan – is in good condition and pest free as of now except few cases of white fly in Abohar district of Punjab, said a senior official. As of now cotton crop conditions in all the three north Indian states is good and free from pest or any other disease.

Boll formation is good and crop may mature early as weather is favourable, he said.  Arrivals are likely to start around September 15.

Trading Ideas:
–Cotton trading range for the day is 22530-23190.
–Cotton gained on short covering after prices dropped on reports of improvement in acreage and lesser pest attacks in Maharashtra coupled with good crop condition.
–Moreover, China cancels import of up to 200,000 bales of India new crop cotton due to fall in International prices.
–In India, cotton acreage till last week was down by 1.9 % on year to 117.7 lakh hac compared to 119.9 lakh ha last year.
–Cotton prices in spot market dropped by 90.00 rupees and settled at 22970.00 rupees.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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