Zinc market under fresh selling; Support seen at 184.7
MCX Copper may trade in a range between 426.2-454
Natural Gas market under fresh selling; Support seen at 194.1
Fresh Buying seen in MCX Crude Oil; Support seen at 5068
MCX Cardamom likely to move in a range of 996-1044
Technically Cotton market is under short covering as market has witnessed drop in open interest by 1.54% to settled at 7536 while prices up 180 rupees.
Now MCX Cotton is getting support at 22296 and below same could see a test of 22133 level, And resistance is now likely to be seen at 22576, a move above could see prices testing 22693.
Cotton on MCX settled up by 0.81% at 22460 amid rising domestic as well as export demand at the spot market. Further, Cotton Advisory Board (CAB) has lowered its cotton output estimates of 377 lakh bales to 370 lakh bales for 2017-18 due to pink bollworm attack on cotton crops in Maharashtra, Telangana and Andhra Pradesh, also fuelled the uptrend.
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.
Though the Met Department pronounced the official onset of monsoon in Gujarat a week ago, kharif sowing is yet to kick off as the State is yet to receive sufficient rains. Delayed rains have shrunk the sowing window for cotton by about a fortnight for the largest producer of the fibre crop.
However, the trade and growers are optimistic that the targetted acreage will be achieved during the remaining sowing period till July 15, if it rains adequately. Kharif sowing for cotton normally commences in the first week of June and goes on till July-end.
Trading Ideas:
–Cotton trading range for the day is 22133-22693.
–Cotton prices ended with gains amid rising domestic as well as export demand at the spot market.
–CAB has lowered its cotton output estimates of 377 lakh bales to 370 lakh bales for 2017-18 due to pink bollworm attack on cotton crops.
–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 60.00 rupees and settled at 20610.00 rupees.
Courtesy: Kedia Commodities
Source: Commodityonline.com
