Zinc market under long liquidation; Support seen at 178.4
MCX Copper may trade in a range between 424.1-435.5
Natural Gas market under short covering; Resistance seen at 191.3
MCX Crude Oil may trade between 4662-4856 levels
MCX Silver may trade between 38198-38864 levels
Technically Cotton market is under short covering as market has witnessed drop in open interest by 8.19% to settled at 2791 while prices up 140 rupees.
Now MCX Cotton is getting support at 22166 and below same could see a test of 22063 level, And resistance is now likely to be seen at 22356, a move above could see prices testing 22443.
Cotton on MCX settled up by 0.63% at 22270 on improved demand and increase in MSP by government. Cotton acreage is reported to be down by 11% on year to 92.7 lakh compared to 104.8 lakh last year, fuelling the upward movement.
FAS India forecasts marketing year 2018/19 cotton production at 28.7 million 480 lb. bales on 11.85 million hectares but cut its estimate for India’s cotton closing stocks in 2018-19 (Aug-Jul) to 14.07 mln bales (1 US bale = 218 kg) from 14.33 mln bales pegged earlier.
Market participants are expecting higher imports in coming months as govt increase MSP for cotton by 26-28%. Farmers in the country have sown cotton across 5.46 mln ha in the ongoing kharif season, down 24% from the year-ago period.
In Maharashtra, the largest producer, the area under the crop was down 10.3% on year at 1.96 mln ha, according to the data. It was, however, a whopping 212.6% higher from a week ago as sowing picked up pace due to good rains in parts of the state.
Acreage in Gujarat, another major grower, was down 61.1% on year at 492,900 ha due to deficient rains. So far in the southwest monsoon season, the state has received 95.3 mm of rains, 44% below the normal weighted average of 170.3 mm, data from India Meteorological Department’s Hydromet division showed.
Trading Ideas:
–Cotton trading range for the day is 22063-22443.
–Cotton prices gained on improved demand and increase in MSP by government.
–Cotton acreage is reported to be down by 11% on year to 92.7 lakh compared to 104.8 lakh last year.
–FAS India forecasts marketing year 2018/19 cotton production at 28.7 million 480 lb. bales on 11.85 million hectares.
–Cotton prices in spot market dropped by 60.00 rupees and settled at 23100.00 rupees.
Courtesy: Kedia Commodities
Source: Commodityonline.com
