MCX Copper may trade in a range between 420.6-436.4
Zinc market under long liquidation; Support seen at 189.5
MCX Nickel under fresh buying; Support seen at 845.9
MCX Aluminium may trade between 130.1-136.9
MCX Mentha Oil under fresh buying; Resistance seen at 1569.7
Technically Cotton market is under fresh buying as market has witnessed gain in open interest by 6.55% to settled at 9142 while prices up 100 rupees.
Now MCX Cotton is getting support at 20850 and below same could see a test of 20750 level, And resistance is now likely to be seen at 21020, a move above could see prices testing 21090.
Cotton on MCX settled up by 0.48% at 20960 on short covering after prices dropped amid subdued demand from local millers and importing nations amid ample stocks. 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.
Trading Ideas:
–Cotton trading range for the day is 20750-21090.
–Cotton gained on short covering after prices dropped amid subdued demand from local millers and importing nations amid ample stocks.
–CAI has trimmed India’s output estimates by 525,000 bales to 33.5 million bales in the 2018-19 season.
–CAI lowered Gujarat’s cotton crop estimate by 150,000 bales and for Maharashtra and Telangana by 200,000 bales each.
–Cotton prices in spot market dropped by 10.00 rupees and settled at 20720.00 rupees.
Courtesy: Kedia Commodities
Source: Commodityonline.com
