MCX Nickel may trade between 806.5-864.5 levels
MCX Aluminium under fresh selling; Support seen at 141.7
Zinc market under long liquidation; Support seen at 183.3
Copper market under fresh selling; Support seen at 428
MCX Menthol Oil under short covering
Technically Cotton market is under fresh selling as market has witnessed gain in open interest by 4.1% to settled at 3808 while prices down 100 rupees.
Now MCX Cotton is getting support at 22213.4 and below same could see a test of 22116.7 level, And resistance is now likely to be seen at 22473.4, a move above could see prices testing 22636.7.
Cotton on MCX settled down 0.45% at 22310 on profit booking after prices gained amid pickup in demand from traders and stockists at the spot market. Further, anticipation of lower production in 2018/19 due to scanty rainfall and an attack of pink bollworms as per Cotton Association of India (CAI) also added support to cotton.
FAS Mumbai estimates MY 2018/19 production at 28.5 million 480-lb bales(36.5 million 170-kilogram bales/6.2 MMT), which is 200,000 480-lb bales lower than the official USDA estimate. Dry weather in Gujarat state’s Saurashtra and Kutch regions and Maharashtra state’s central and eastern regions will likely affect yields.
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However, Indian Cotton Federation (ICF) said that the availability of cotton in the country would be comfortable in 2018/19 season. Indian Cotton Federation (ICF) said that the availability of cotton in the country would be comfortable in 2018/19 season.
This season there are reports of delay in peak arrivals from Gujarat and Rajasthan due to dry weather and below-normal rains in most producing states, yields are expected to get affected.
According to CAI, cotton production in 2018/19 is likely to fall 4.7% from the previous season to 34.8 million bales due to scanty rainfall and an attack of pink bollworms. As per CAI, India’s forward export contracts of cotton have more than doubled from about 7 lakh bales in September 2017, driven by increased demand from China.
Trading Ideas:
–Cotton trading range for the day is 22120-22640.
–Cotton dropped on profit booking after prices gained amid pickup in demand from traders and stockists at the spot market.
–Further, anticipation of lower production in 2018/19 due to scanty rainfall and an attack of pink bollworms also supporting prices.
–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.
–Cotton prices in spot market gained by 90.00 rupees and settled at 22520.00 rupees.
Courtesy: Kedia Commodities
Source: Commodityonline.com
