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Sunday, February 25, 2024

MCX Cotton may move in a range of 31150-31830

Technically Cotton market is under short covering as market has witnessed drop in open interest by 3.29% to settled at 3674 while prices up 110 rupees.

Now MCX Cotton is getting support at 31370 and below same could see a test of 31150 levels, and resistance is now likely to be seen at 31710, a move above could see prices testing 31830.

Cotton yesterday settled up by 0.35% at 31580 amid tight supplies owing to higher input costs and logistics snarls coupled with rising global demand.

China’s 2021 cotton output fell 3% to 5.73 million tonnes, said the National Bureau of Statistics.Planted acreage for the fibre fell by 4.4% to 3.03 million hectares but yields increased slightly during the period.Arrivals of cotton in spot markets were at 166,500 bales, higher by 21.97% than 136,500 bales.

Of the total quantity, around 12,000 bales arrived in Haryana, 3,500 in Punjab, and 19,000 bales in Rajasthan.Arrivals were pegged at 40,000 bales in Gujarat, around 15,000 bales in Madhya Pradesh, and 35,000 bales in Maharashtra.

Nearly 15,000 bales arrived in Karnataka, 2,000 in Odisha, and 25,000 bales in Telangana and Andhra Pradesh combined.The USDA also lowered cotton global production and ending stocks estimates for the 2021/22 crop year in its monthly supply-demand report.

The December World Agricultural Supply and Demand Estimates (WASDE) report, which forecast global ending stocks at 85.73 million bales for the 2021/22 crop year, about 1.2 million bales lower than the previous month, citing lower output and slightly higher consumption.

But the report also slightly raised its U.S. production estimate to 18.28 million bales, while ending stocks estimates were unchanged at 3.40 million bales. In spot market, Cotton dropped by 10 Rupees to end at 31630 Rupees.

Trading Ideas:
–Cotton trading range for the day is 31150-31830.
–Cotton prices remained supported amid tight supplies owing to higher input costs and logistics snarls coupled with rising global demand.
–China’s 2021 cotton output fell 3% to 5.73 million tonnes.
–India’s 2021/22 cotton production seen at 28 mln bales – USDA.
–In spot market, Cotton dropped  by -10 Rupees to end at 31630 Rupees.

Courtesy: Kedia Commodities

Source: Comodity Online

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