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Monday, October 18, 2021

MCX Cotton under short covering; Resistance seen at 26010

Technically Cotton market is under short covering as market has witnessed drop in open interest by 0.21% to settled at 1858 while prices up 390 rupees.

Now MCX Cotton is getting support at 25480 and below same could see a test of 25160 levels, and resistance is now likely to be seen at 26010, a move above could see prices testing 26220.

Cotton yesterday settled up by 1.53% at 25810 as the pink bollworm attack on cotton crop in Punjab has been found to be much beyond earlier anticipated.

Over one fourth area in biggest cotton growing districts of Bathinda and Mansa are disturbed on the count though earlier the attack was felt in around 10-15% area in these districts.

Cotton procurement for 2021-22 kharif season should commence from the first week of November, Minister for Cooperation and Marketing Balasaheb Patil said. At a meeting, Patil took the stock of cotton cultivation in Maharashtra.

He directed the department to start early cotton procurement from November first week to facilitate timely sale and income for farmers. The directives come in the wake of a delay in the last kharif season due to Covid-19 pandemic and lockdown, for which procurement centres did not open on time.

“Cotton sowing in the current kharif season was done on 39.37 lack hectares. Last year, it was sown on 42.08 lakh hectares. The area under cotton sowing has declined by 6.44 per cent,” Patil said.

Amid high demand and better prices being offered by private players, Punjab has witnessed a 50-fold increase in the arrival of cotton crop at mandis as compared to the figures till September 21 last year. In spot market, Cotton dropped by 70 Rupees to end at 26390 Rupees.

Trading Ideas:
–Cotton trading range for the day is 25160-26220.
–Cotton prices remained supported as the pink bollworm attack on cotton crop in Punjab has been found to be much beyond earlier anticipated.
–Kharif cotton procurement should begin in November: Maharashtra minister
–Amid high demand and better prices being offered by private players, Punjab has witnessed a 50-fold increase in the arrival of cotton crop
–In spot market, Cotton dropped by 70 Rupees to end at 26390 Rupees.

Courtesy: Kedia Commodities

Source: Comodity Online

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