MCX Nickel under fresh buying; Resistance seen at 923.2
MCX Aluminium likely to move in a range of 148.1-155.7
MCX Menthol Oil under long liquidation; Support seen at 1660.6
Natural Gas market under fresh buying; Support seen at 222.2
Crude Oil market under fresh buying; Support seen at 5380
Technically Cotton market is under short covering as market has witnessed drop in open interest by 3.44% to settled at 3113 while prices up 90 rupees.
Now MCX Cotton is getting support at 21770 and below same could see a test of 21600 level, And resistance is now likely to be seen at 22030, a move above could see prices testing 22120.
Cotton on MCX settled up by 0.41% at 21930 on short covering after prices dropped on improved harvesting activities of early sown crop. Arrivals of new crop have started in northern region expected to pick up further due to favourable weather forecast.
However, downside seen limited due to lower production forecast for upcoming season and reports of crop damage in northern region resulting with heavy rainfall. Meanwhile, Government released its first advance estimated of production for year 2018-19 estimated overall cotton production at 324.83 lakh bales against the 348.88 lakh bales of prior year, lower by 7% y/y. U.S.
Department of Agriculture released its weekly crop progress report showed 39 percent of the cotton crop was in good to excellent condition versus 39 percent a week ago and 60 percent last year wherein 23% of cotton crop were harvested till 23rd Sep.
USDA raised its world production forecast of cotton unexpectedly from 120.53 million bales of 480 each to 121.97 million bales due to increased production in US, China and Brazil.
Cotton production in US revised upwardly from 19.24 million bales to 19.68 million bales wherein same is pegged at 27.50 million bales in China against the 26.5 million bales prior month’s forecast. Similarly, cotton output in Brazil for year 2018-19 was revised at 10 million bales against the 9.5 million bales of prior month.
Trading Ideas:
–Cotton trading range for the day is 21600-22120.
–Cotton gained on short covering after prices dropped on improved harvesting activities of early sown crop.
–In India, cotton acreage till last week was down by 1% on year to 120.6 lakh hac compared to 121.7 lakh ha last year.
–Total arrivals reached at 37 million bales as of August 25 compared 34.5 million bales in the same period last year, according to CAB estimates.
–Cotton prices in spot market dropped by 340.00 rupees and settled at 21710.00 rupees.
Courtesy: Kedia Commodities
Source: Commodityonline.com
