Zinc market under fresh selling; Support seen at 174.6
MCX Copper may trade in a range between 416.8-428.4
MCX Copper may trade in a range between 416.8-428.4
Natural Gas market under fresh selling; Support seen at 190.5
Crude Oil market under long liquidation; Support seen at 4714
Technically MCX Cotton is getting support at 22614 and below same could see a test of 22467 level, And resistance is now likely to be seen at 22904, a move above could see prices testing 23047.
Cotton on MCX settled up by 0.22% at 22760 amid anticipation of lower production from major producing belts due to reduction in crop acreage.
However, upside seen limited amid higher crop estimated by FAS India and increased cotton area as monsoon rains have now covered entire country. Cotton acreage till last week was down by 24% on year to 54.60 lakh hac, according to the farm ministry data.
In Maharashtra, the largest producer, the area under the crop was down 10.3% on year at 19.6 lakh ha as on last week while acreage in Gujarat, another major grower, was down 61.1% on year at 492,900 ha due to deficient rains.
However, market participants are expecting higher imports in coming months as government increase minimum support prices for cotton by 26-28%. MSP of cotton (MS) has been raised to Rs 5,150 from Rs 4,020 and that of cotton (LS) to Rs 5,450 from Rs 4,320 per quintal.
Farmers in the country have sown cotton across 3.22 mln ha in the ongoing kharif season, down 30.2% from the year-ago period, according to data released by the farm ministry.
Planting of the crop was down in all the states barring Karnataka, Haryana, Punjab and Rajasthan, the data showed. In Maharashtra, the largest producer, the area under the fibre was down 49.6% on year at 626,000 ha, according to the data.
Acreage in Gujarat, another major grower, was down 51.2% on year at 242,000 ha mainly due to the delay in arrival of monsoon over the state.
Trading Ideas:
–Cotton trading range for the day is 22467-23047.
–Cotton prices gained amid anticipation of lower production from major producing belts due to reduction in crop acreage.
–However, upside seen limited amid higher crop estimated by FAS India and increased cotton area as monsoon rains have now covered entire country.
–China’s 2017/18 cotton imports were seen up 200,000 tonnes from the previous month’s forecast.
–Cotton prices in spot market dropped by 10.00 rupees and settled at 22960.00 rupees.
Courtesy: Kedia Commodities
Source: Commodityonline.com
