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Tuesday, May 24, 2022

MCX Cotton may trade between 27780-29600 levels

Technically Cotton market is under fresh buying as market has witnessed gain in open interest by 6.92% to settled at 2148 while prices up 670 rupees.

Now MCX Cotton is getting support at 28290 and below same could see a test of 27780 levels, and resistance is now likely to be seen at 29200, a move above could see prices testing 29600.

Cotton yesterday settled up by 2.38% at 28810 because of threat regarding significant crop damage in the affected areas, in addition to possibility of harvest delays.

The pink bollworm attack has been discovered in Bathinda district’s cotton farms in Punjab. The harvest in Punjab shall begin by next week.

The recent developments regarding pink bollworm infestations in Punjab, Haryana and heavy rains in Madhya Pradesh and Maharashtra have started raising doubts regarding this season’s crop size.

In earlier forecasts, the US Department of Agriculture (USDA) and the Cotton Corporation of India (CCI) have come out with a better harvest versus previous year. Cotton is grown around 4.8 lakh hectares in the state of Punjab.

Reports say that Sirsa, Fatehabad, Hisar, Mahendragarh, and Jind in Haryana, and Bathinda and Mansa in Punjab, are some of the districts affected by the pink bollworm infestation.

The regions of Maharashtra and Madhya Pradesh are also reportedly affected adversely, from the heavy rains across the respective productive belts.

The Haryana government directed all deputy commissioners to send reports regarding the recent damage to cotton crop due to heavy rains and waterlogging by October 15. In spot market, Cotton dropped by 70 Rupees to end at 27620 Rupees.

Trading Ideas:
–Cotton trading range for the day is 27780-29600.
–Cotton gained because of threat regarding significant crop damage in the affected areas, in addition to possibility of harvest delays.
–The recent developments regarding pink bollworm infestations in Punjab, Haryana have started raising doubts regarding this season’s crop size.
–The regions of Maharashtra and Madhya Pradesh are also reportedly affected adversely, from the heavy rains across the respective productive belts.
–In spot market, Cotton dropped  by 70 Rupees to end at 27620 Rupees.

Courtesy: Kedia Commodities

Source: Comodity Online

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