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Monday, July 4, 2022

MCX Cotton under short covering; Resistance seen 21000

NCDEX Chana under long liquidation

Mentha Oil market under long liquidation; Support seen at 1545.9

NCDEX Jeera may move in a range of 16780-17480

NCDEX Turmeric likely to move in a range of 6480-6728

Aluminium market under fresh selling; Support seen at 130.8

Technically Cotton market is under short covering as market has witnessed drop in open interest by 8.72% to settled at 5790 while prices up 30 rupees.

Now MCX Cotton is getting support at 20890 and below same could see a test of 20830 level, And resistance is now likely to be seen at 21000, a move above could see prices testing 21050.

Cotton on MCX settled up by 0.14% at 20950 amid reports of lower production from major producing regions during current year. However, the reports of lower production during current year, is likely to support prices.

Cotton Association of India (CAI), the trade body projected domestic consumption at 32 million bales and exports at 5.1 million bales. CAI trimmed 2018-19 cotton output to 33.5 million bales of 170 kg each as farmers have uprooted nearly 70% plants in Gujarat, Maharashtra and Telangana due to moisture stress.

CAI lowered Gujarat’s cotton crop estimate by 150,000 bales and Maharashtra and Telangana by 200,000 bales each. India is likely to produce 33.5 million bales of cotton in the 2018/19 season that started on Oct. 1, down 1.5 percent from an earlier estimate, a leading trade body said.

The world’s biggest cotton producer had harvested 36.5 million bales in the previous season. “Farmers have uprooted cotton plants on about 70 to 80 percent area due to moisture deficiency and now there is no scope for third and fourth picking,” Atul Ganatra, president of the Cotton Association of India, told.

The drop in output is likely to lead to lower cotton shipments from India, allowing rivals such as the United States, Brazil and Australia to increase cargoes to key Asian buyers such as China and Pakistan.

Trading Ideas:
–Cotton trading range for the day is 20830-21050.
–Cotton prices gained amid reports of lower production from major producing regions during current year.
–Cotton Association of India (CAI) cuts 2018-19 production estimate by 5.25 lakh bales this month to 335 lakh bales for the year 2018-19.
–The CAI has reduced the crop estimate for Gujarat by 1.50 lakh bales and for Maharashtra and Telangana by 2 lakh bales each.
–Cotton prices in spot market gained by 90.00 rupees and settled at 20750.00 rupees.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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