Technically Cotton market is under fresh selling as market has witnessed gain in open interest by 2.14% to settled at 2194 while prices down 530 rupees.
Now MCX Cotton is getting support at 27830 and below same could see a test of 27370 levels, and resistance is now likely to be seen at 28790, a move above could see prices testing 29290.
Cotton yesterday settled down by 1.84% at 28280 on profit bookinga after prices gained 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 27440 Rupees.
–Cotton trading range for the day is 30010-32010.
–Cotton prices gained on the back of supply concerns and growing demand from top user China, which is filling needs mainly from the US and India.
–Meanwhile, heavy rains are threatening crops in US growing regions, while a pest called pink bollworm is rapidly spreading across fields.
–Unseasonal rains in growing areas are proving to be a blessing in disguise as they might help cotton farmers go in for third and fourth picking.
–In spot market, Cotton gained by 260 Rupees to end at 28480 Rupees.
Courtesy: Kedia Commodities
Source: Comodity Online