NCDEX Soyabean under fresh buying; Resistance seen at 3526
NCDEX Ref.Soya Oil likely to trade in range between 729-745
MCX Crude Palm Oil under short covering; Support seen at 531.2
NCDEX Mustard Seed may trade in range between 3873-3965
NCDEX Turmeric under short covering; Resistance seen at 6676
Technically Cotton market is under fresh selling as market has witnessed gain in open interest by 0.08% to settled at 8281 while prices down 130 rupees.
Now MCX Cotton is getting support at 20780 and below same could see a test of 20630 level, And resistance is now likely to be seen at 21180, a move above could see prices testing 21430.
Cotton on MCX settled down by 0.62% at 20940 on profit booking after prices gained on rising demand from traders and stockists at the spot market. Besides, anticipation of lower output from major growing regions by Cotton Association of India also added support to cotton prices.
However, upside seen limited due to improving arrivals on reports of rise in cotton imports. Cotton exports from the country in October is higher at 2.89 lakh bales as per data released by Commerce Ministry.
CAI cuts 2018- 19 production estimate by 3 lakh bales to 340.25 lakh bales. In its monthly report, USDA cut India’s cotton production estimates for 2018-19 (Oct-Sep) by 1.79% or 6.41 lakh bales to 352.18 lakh bales on month.
In November, it forecast at 358.6 lakh bales. As per trade sources, since October deals for the over 25 lakh bales of cotton have been signed, and around 15 lakh bales have already been shipped. Cotton market has been battling weak demand over the past few months, especially due to lack of buying from China on a trade spat with United States.
Falling oil prices is also pressurizing cotton prices as it makes competing synthetic fibers – which use petroleum – cheaper and potentially dent demand for cotton. Export Sales report indicated that just 47,099 RB of 18/19 upland cotton sold for export in the week of 12/6 down compared to time last year and 50.35% lower than the week prior.
Trading Ideas:
–Cotton trading range for the day is 20630-21430.
–Cotton dropped on profit booking after prices gained on rising demand from traders and stockists at the spot market.
–Cotton exports from the country in October is higher at 2.89 lakh bales as per data released by Commerce Ministry.
–CAI cuts 2018- 19 production estimate by 3 lakh bales to 340.25 lakh bales.
–Cotton prices in spot market gained by 30 rupees and settled at 20990.00 rupees.
Courtesy: Kedia Commodities
Source: Commodityonline.com
