MCX Copper may trade between 418.1-437.1 levels
Natural Gas market under fresh selling; Support seen at 190.9
MCX Crude Oil may trade in a range between 4636-4864
Silver market under fresh selling; Support seen at 38069
Gold market under fresh selling; Support seen at 29747
Technically Cotton market is under fresh buying as market has witnessed gain in open interest by 5.5% to settled at 3895 while prices up 170 rupees.
Now MCX Cotton is getting support at 23954 and below same could see a test of 23787 level, And resistance is now likely to be seen at 24224, a move above could see prices testing 24327.
Cotton on MCX settled up by 0.71% at 24120 on anticipation of lower production from major producing belts of Maharashtra due to pink bollworm attack. 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%. The Cotton Advisory Board (CAB) has said that India’s cotton exports are likely to increase by 20% during the current cotton season of October, 2017 to September, 2018, over last year. It added that exports are expected to touch 70 lakh bales by September this year.
From October, 2017 to April 2018, the total amount of cotton exported from India was 51.21 lakh bales. The board has estimated the cotton production for the current cotton season 2017-18 (October 2017 to September 2018) at 370 lakh bales.
CAB highlighted that domestic prices of cotton are ruling below the international cotton prices. Domestic sale prices of the representative variety of S-6 cotton vis-a-vis international prices of its equivalent variety were lower by 7.18%.
Trading Ideas:
–Cotton trading range for the day is 23787-24327.
–Cotton gained on anticipation of lower production from major producing belts of Maharashtra due to pink bollworm attack.
–However, downside seen limited on anticipation of lower production from major producing belts of Maharashtra due to pink bollworm attack.
–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 gained by 40.00 rupees and settled at 23210.00 rupees.
Courtesy: Kedia Commodities
Source: Commodityonline.com
