Technically Cotton market is under fresh buying as market has witnessed gain in open interest by 0.32% to settled at 1862 while prices up 70 rupees.
Now MCX Cotton is getting support at 25370 and below same could see a test of 25310 levels, and resistance is now likely to be seen at 25480, a move above could see prices testing 25530.
Cotton yesterday settled up by 0.28% at 25420 on concern over crop damage in the state due to pink bollworm infestation. The way it is raining in the whole country since last 15 days, it has started damaging the cotton crop.
Cotton sown this year is 8% less as compared to last year and this rain has damaged the crop. Production of cotton estimated at 36.22 million bales (of 170 kg each) and production of Jute & Mesta estimated at 9.61 million bales (of 180 kg each).
The new cotton crop has begun arriving in northern markets, Karnataka and Telangala with prices of kapas (raw cotton) ruling at least 10 per cent higher than the minimum support price (MSP) levels fixed by the Centre for the new season starting October.
The overall crop condition is good as on date and, based on the feedback from the 10 growing States, the yield will be much higher this year and quality very good. The demand is slow as most of the spinning mills have covered their needs till December.
If the moisture comes down, demand may improve over the next couple of weeks. In September WASDE report, the USDA projected U.S. production at 18.5 million bales, 1.2 million bales higher than the previous month. In spot market, Cotton dropped by 70 Rupees to end at 26420 Rupees.
–Cotton trading range for the day is 25310-25530.
–Cotton prices remained supported on concern over crop damage in the state due to pink bollworm infestation.
–Cotton sown this year is 8% less as compared to last year and this rain has damaged the crop.
–Cotton harvest likely to be delayed amid flooding in Saurashtra region in Gujarat
–In spot market, Cotton dropped by 70 Rupees to end at 26420 Rupees.
Courtesy: Kedia Commodities
Source: Comodity Online