MCX Nickel likely to move in a range of 847.8-872.6
MCX Aluminium may trade between 142.7-146.9 levels
MCX Menthol Oil under fresh buying; Support seen at 1785.6
MCX Cardamom under long liquidation
NCDEX Jeera may trade between 19220-20220 levels
Technically MCX Cotton is getting support at 22570 and below same could see a test of 22400 level, And resistance is now likely to be seen at 23050, a move above could see prices testing 23360.
Cotton on MCX settled down by -1.69% at 22750 on profit booking after prices gained due lower production expectation this year, delayed arrivals from Gujarat & Maharashtra.
Even as Cotton Corporation of India (CCI) has projected an ambitious procurement target of 100 lakh bales in the just-commenced cotton season (Oct 2018-Sep 2019), it is failing to attract sellers in Punjab due to strict quality norms and farmers being wary of bypassing the agents/adathiyas.
As per government’s sowing report, cotton has been sown in 122.38 lakh ha, lower than 124.29 lakh ha sown last year till date but higher than normal kharif area of 119.75 lakh ha on date. Scanty rainfall in Gujarat & an attack of pink bollworms In Maharashtra & Telangana are expected to squeeze the cotton crop yields.
As a result, the Cotton Association of India (CAI) has pegged cotton production in 2018-19 to fall 4.7% from the previous season’s 365 lakh bales to 348 lakh bales. Cotton arrivals in the Southern part of India including Andhra Pradesh and Karnataka were 3,000 bales and 2,000 bales, respectively, against 5,000 bales and 4,000 bales while in Telangana the arrivals were 5,000 bales against 7,000 bales on the previous day.
Meanwhile, fibre arrivals in Upper Rajasthan were 9,000 bales compared to 8,000 bales a day before while in Lower Rajasthan were unchanged at 8,000 bales. Cotton arrivals in Maharashtra were 6,000 bales compared to 7,000 bales while arrivals in Gujarat were 15,000 bales compared to 19,000 bales on the previous day.
Trading Ideas:
–Cotton trading range for the day is 22400-23360.
–Cotton dropped on profit booking after prices gained due lower production expectation this year, delayed arrivals from Gujarat & Maharashtra.
–Cotton arrivals in Maharashtra were 6,000 bales compared to 7,000 bales while arrivals in Gujarat were 15,000 bales compared to 19,000 bales on the previous day.
–Cotton Corporation of India (CCI) has projected an ambitious procurement target of 100 lakh bales in the just-commenced cotton season.
–Cotton prices in spot market dropped by 110.00 rupees and settled at 22640.00 rupees.
Courtesy: Kedia Commodities
Source: Commodityonline.com
