MCX Aluminium may trade between 141.4-148.6 levels
MCX Mentha Oil under short covering; Support seen at 1292.9
MCX Nickel likely to trade in range between 963.5-1022.7
MCX Zinc expected to trade between 189.4-199.2 levels
MCX Copper may trade between 439-456.6 levels
Technically Cotton market is under fresh selling as market has witnessed gain in open interest by 0.25% to settled at 7654 while prices down 80 rupees.
Now MCX Cotton is getting support at 22180 and below same could see a test of 22080 level, And resistance is now likely to be seen at 22380, a move above could see prices testing 22480.
Cotton on MCX settled down by 0.36% at 22280 tracking weakness in spot demand amid sufficient stock in the country. There are reports of good export demand and lower pace of kharif sowing in the country.
Cotton acreage till last week was down by 30% on year to 32.2 lakh hac, according to the farm ministry data. The fall in area of cotton was mainly due to delay in arrival of monsoon over Gujarat, one of the largest growers of the commodity.
According to commerce ministry data, cotton exports in April is about 8.23 lakh bales, up by 86.13% on year. Exports for the season are only higher by7% at 51.21 lakh bales in cotton year 2017/18 started on October.
The Cotton Advisory Board (CAB) has lowered its cotton output estimates of 377 lakh bales to 370 lakh bales for 2017-18. This was largely attributed to pink bollworm attack on cotton crops in Maharashtra, Telangana and Andhra Pradesh.
The estimated cotton output of 370 lakh bales for 2017-18, however, is higher by around 7% from the previous year’s output of 345 lakh bales.
The board had estimated cotton production to be 345 lakh bales and exports at 59 lakh bales for the season when it had met in December. Production estimates were lower in the beginning of the season as the board expected damage to the crop from bollworm attack.
Trading Ideas:
–Cotton trading range for the day is 22080-22480.
–Cotton prices dropped tracking weakness in spot demand amid sufficient stock in the country.
–There are reports of good export demand and lower pace of kharif sowing in the country.
–Cotton acreage till last week was down by 30% on year to 32.2 lakh hac, according to the farm ministry data.
–Cotton prices in spot market dropped by 10.00 rupees and settled at 22670.00 rupees.
Source: Commodityonline.com
