15.3 C
New York
Wednesday, October 27, 2021

MCX Cotton under short covering; Resistance seen at 20260

NCDEX Chana under short covering; Support seen at 4258

NCDEX Jeera may trade in range between 15535-15835

NCDEX Turmeric likely to move in range between 6202-6314

NCDEX Mustard may trade in range between 3883-3953

MCX Crude Palm Oil under short covering; Support seen at 564.3

Technically Cotton market is under short covering as market has witnessed drop in open interest by 6.11% to settled at 7330 while prices up 60 rupees.

Now MCX Cotton is getting support at 20020 and below same could see a test of 19920 level, And resistance is now likely to be seen at 20260, a move above could see prices testing 20400.

Cotton on MCX settled up by 0.3% at 20110 on short covering after prices dropped amid higher cotton stocks with farmers and fear of imports. India’s cotton production is expected to dip by 7% due to insufficient rainfall in major growing regions.

The International Cotton Advisory Committee (ICAC) recently stated that India’s cotton production is expected to dip by 7% due to insufficient rainfall in major growing regions, reports said. Adverse climatic conditions and water shortage coupled with a static growing area are set to knock India off its No 1 perch in cotton production worldwide, report added.

As per the latest international reports, India will lose its top cotton producer tag to China for the year 2018-19, which has shown improved yields with better farming practices. Cotton output in China is expected to increase by about 1% to 5.94 million tons this year.

According to Cotton Association of India (CAI), India’s cotton output is expected to dip at 33.5 million bales for 2018-19, lowest since 2010-11, when it reported 33.225 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.

Trading Ideas:
–Cotton trading range for the day is 19920-20400.
–Cotton gained on short covering after prices dropped amid higher cotton stocks with farmers and fear of imports.
–India’s cotton production is expected to dip by 7% due to insufficient rainfall in major growing regions.
–ICAC stated that India’s cotton production is expected to dip by 7% due to insufficient rainfall in major growing regions.
–Cotton prices in spot market dropped by 120.00 rupees and settled at 20280.00 rupees.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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