NCDEX Chana under fresh selling; Support seen at 4276
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NCDEX Mustard Seed likely to move in a range of 3845-3947
MCX Crude Palm Oil may trade between 538.4-553.2 levels
Technically Cotton market is under short covering as market has witnessed drop in open interest by 5.43% to settled at 7354 while prices up 60 rupees.
Now MCX Cotton is getting support at 20560 and below same could see a test of 20390 level, And resistance is now likely to be seen at 20850, a move above could see prices testing 20970.
Cotton on MCX settled up by 0.29% at 20740 amid reports of lower production from major producing regions during current year. However, the reports of lower production during current year, is likely to support prices.
Cotton Association of India (CAI), the trade body projected domestic consumption at 32 million bales and exports at 5.1 million bales. CAI trimmed 2018-19 cotton output to 33.5 million bales of 170 kg each as farmers have uprooted nearly 70% plants in Gujarat, Maharashtra and Telangana due to moisture stress.
CAI lowered Gujarat’s cotton crop estimate by 150,000 bales and Maharashtra and Telangana by 200,000 bales each. India is likely to produce 33.5 million bales of cotton in the 2018/19 season that started on Oct. 1, down 1.5 percent from an earlier estimate, a leading trade body said.
The world’s biggest cotton producer had harvested 36.5 million bales in the previous season. “Farmers have uprooted cotton plants on about 70 to 80 percent area due to moisture deficiency and now there is no scope for third and fourth picking,” Atul Ganatra, president of the Cotton Association of India, told.
The drop in output is likely to lead to lower cotton shipments from India, allowing rivals such as the United States, Brazil and Australia to increase cargoes to key Asian buyers such as China and Pakistan. It may also support global prices that corrected more than 8 percent in 2018.
Trading Ideas:
–Cotton trading range for the day is 20390-20970.
–Cotton gained amid reports of lower production from major producing regions during current year.
–CAI trimmed 2018-19 cotton output to 33.5 million bales of 170 kg each as farmers have uprooted nearly 70% plants in Gujarat, Maharashtra and Telangana.
–India is likely to produce 33.5 million bales of cotton in the 2018/19 season that started on Oct. 1, down 1.5 percent from an earlier estimate.
–Cotton prices in spot market dropped by 20.00 rupees and settled at 20900.00 rupees.
Courtesy: Kedia Commodities
Source: Commodityonline.com
