Short covering seen in MCX Cardamom
NCDEX Jeera under long liquidation
NCDEX Turmeric under fresh selling; Support seen at 6438
NCDEX Mustard Seed under long liquidation; Resistance seen at 4245
Long liquidation seen in MCX Crude Palm Oil
Technically Cotton market is under fresh selling as market has witnessed gain in open interest by 0.8% to settled at 3422 while prices down 90 rupees.
Now MCX Cotton is getting support at 22190 and below same could see a test of 22110 level, And resistance is now likely to be seen at 22400, a move above could see prices testing 22530.
Cotton on MCX settled down 0.4% at 22270 tracking weak International prices, improvement in acreage and lesser pest attacks is keeping prices under control. China cancels import of up to 200,000 bales of India new crop cotton.
In India, cotton acreage till last week was down by 0.3% on year to 120.6 lakh hac compared to 120.9 lakh ha last year, according to the farm ministry data. Currently cotton futures are traded about 25% higher than last year prices.
As per USDA monthly report, India cotton production is unchanged from last month forecast at 28.7 million bales (480 lb bales). Production is lower on year by 1%. Export forecast is down 2.2% on month at 4.4 million bales.
The United States Department of Agriculture (USDA), in its latest September report, retained its estimates for India’s 2018-19 cotton output but revised consumption forecast marginally higher.
In its World Agricultural Supply and Demand Estimates report, the USDA maintained India’s 2018-19 cotton output estimates to 28.70 million bales of cotton (480 lb) for September from its August projection.However, USDA lowered India’s cotton export projections marginally to 4.40 million bales from 4.50 million bales projected earlier.
Trading Ideas:
–Cotton trading range for the day is 22110-22530.
–Cotton dropped tracking weak International prices, improvement in acreage and lesser pest attacks is keeping prices under control.
–China cancels import of up to 200,000 bales of India new crop cotton.
–India, cotton acreage till last week was down by 0.3% on year to 120.6 lakh hac compared to 120.9 lakh ha last year.
–Cotton prices in spot market dropped by 50.00 rupees and settled at 22790.00 rupees.
Courtesy: Kedia Commodities
Source: Commodityonline.com
