MCX Crude Oil expected to trade in a range between 5152-5304
MCX Silver likely to trade in a range between 37558-38450
MCX Nickel likely to move in a range of 907.9-952.9
MCX Aluminium may trade between 146.2-151.4 levels
MCX Menthol Oil likely to move in a range of 1603.7-1679.5
Technically Cotton market is under fresh selling as market has witnessed gain in open interest by 1.55% to settled at 3345 while prices down 70 rupees.
Now MCX Cotton is getting support at 22140 and below same could see a test of 22060 level, And resistance is now likely to be seen at 22340, a move above could see prices testing 22460.
Cotton on MCX settled down by 0.31% at 22220 on profit booking after prices on reports of some damage to cotton crops on North India due to rains. In India, cotton acreage till last week was down by 1% on year to 120.6 lakh hac compared to 121.7 lakh ha last year, according to the farm ministry data.
This year harvest likely to be delayed in both Gujarat and Maharashtra due to late rains and sowing thus the peak arrival season would be deferred by more than a month to Dec-Jan which may result in supply squeeze in Nov.
As per CAI, India’s forward export contracts of cotton have more than doubled from about seven lakh bales in September 2017, driven by increased demand from China. India, the world’s biggest producer of cotton and pulses and the second-biggest producer of sugar and rice, has had 777.4 mm of rainfall since the start of the monsoon season on June 1, nearly 9 percent lower than normal, data compiled by India Meteorological Department (IMD) shows.
Total arrivals reached at 37 million bales as of August 25 compared 34.5 million bales in the same period last year, according to Cotton Advisory Board (CAB) estimates. Arrivals in Gujarat stood at 10.1 million bales as of August 25 compared to 8.9 million bales in the corresponding period last year.
Trading Ideas:
–Cotton trading range for the day is 22060-22460.
–Cotton dropped on profit booking after prices on reports of some damage to cotton crops on North India due to rains.
–In India, cotton acreage till last week was down by 1% on year to 120.6 lakh hac compared to 121.7 lakh ha last year.
–Total arrivals reached at 37 million bales as of August 25 compared 34.5 million bales in the same period last year, according to CAB estimates.
–Cotton prices in spot market gained by 180.00 rupees and settled at 22460.00 rupees.
Courtesy: Kedia Commodities
Source: Commodityonline.com
