MCX Cardamom under short covering
NCDEX Jeera under fresh selling; Support seen at 19900
NCDEX Turmeric under fresh buying; Resistance seen at 7324
NCDEX Mustard Seed under fresh selling; Support seen at 4111
Copper market under fresh selling; Support seen at 412.9
Technically Cotton market is under short covering as market has witnessed drop in open interest by 3.63% to settled at 3978 while prices up 160 rupees.
Now MCX Cotton is getting support at 23770 and below same could see a test of 23610 level, And resistance is now likely to be seen at 24020, a move above could see prices testing 24110.
Cotton on MCX settled up by 0.67% at 23930 on short covering after prices dropped on improved planting progress across India. Area under cotton has surpassed normal sowing figures till end of first week of August and stood at 109.79 lakh hac against the 114.34 lakh hac of prior year and 107.77 lakh hac of normal.
Meanwhile, ICAC cut its forecast for global cotton production from 25.95 million tonnes to 25.89 million tonnes, lower by 4% y/y. ICAC projected global cotton consumption could increase 4% year on year to reach an all-time high of 27.5 million tonnes in 2018-19.
Cotton area in 2018-19 is projected to decrease in major producing countries including India (11.9 million hectares, down 3%) and the USA, although it should remain stable in China at 3.3 million hectares.
Total arrivals of cotton for year 2017-18 were reported at 354.28 lakh bales as on 26th July as per data compiled by Cotton Corporation of India. Largest contribution in arrivals was made by Gujarat, followed by Maharashtra and Telangana which contributed about 98.26 lakh bales, 85 lakh bales 50.5 lakh bales respectively.
Total cotton stocks at MCX warehouses were reported at 125300 bales. USDA released its weekly export sales data showed net sales of 19,600 running bales for 2017/2018 were up noticeably from the previous week, but down 49 percent from the prior 4-week average.
Trading Ideas:
–Cotton trading range for the day is 23610-24110.
–Cotton prices gained on short covering after prices dropped on improved planting progress across India.
–Meanwhile, ICAC cut its forecast for global cotton production from 25.95 million tonnes to 25.89 million tonnes, lower by 4% y/y.
–ICAC projected global cotton consumption could increase 4% year on year to reach an all-time high of 27.5 million tonnes in 2018-19.
-Cotton prices in spot market dropped by 20.00 rupees and settled at 23240.00 rupees.
Courtesy: Kedia Commodities
Source: Commodityonline.com
