MCX Zinc under long liquidation; Support seen at 191.2
MCX Nickel likely to move in a range of 900.8-959.8
MCX Aluminium under short covering; Support seen at 143.8
MCX Mentha Oil under fresh buying; Support seen at 1607.8
MCX Copper under long liquidation
Technically Cotton market is under long liquidation as market has witnessed drop in open interest by -1.21% to settled at 12804 while prices down 160 rupees.
Now MCX Cotton is getting support at 20640 and below same could see a test of 20460 level, And resistance is now likely to be seen at 21150, a move above could see prices testing 21480.
Cotton on MCX settled down by 0.76% at 20810 on profit booking after prices gained due to lower output estimates in the current season and moderate demand.
In 2018/19, production of Cotton is estimated at 300.9 lakh bales (of 170 kg each), down about 7.4% compared to previous estimate of 324 lakh bales as per latest government advance estimates.
However, FAS Mumbai estimates marketing year (MY) 2018/19 production at 27.3 million 480-lb bales (35 million 170-kg bales/6 mt), which is 300,000 480-lb bales higher than the official USDA estimate.
In its latest press release, CAI cuts 2018-19 production estimate further by 5 lakh bales to 330 lakh bales for the year 2018- 19 however, higher imports of 27 lakh bales (15) and lower exports of 50 lakh bales (Vs 69) for 2018/19 season is bearish.
According to data compiled by DGCIS, country exported 120,904 tonnes of cotton raw including wasted in January, down 27.4% compared to 166,546 tonnes last year. Imports in January up by 21.4% at 17,645 tonnes (Vs 14533 tonnes).
As per the latest international reports, India will lose its top cotton producer tag to China for the year 2018-19, which has shown improved yields with better farming practices.
Cotton output in China is expected to increase by about 1% to 5.94 million tons this year. The US Department of Agriculture (USDA) has cut India’s 2018-19 cotton output estimates 1.8% from earlier to 27.0 million bales, the agency said.
Trading Ideas:
–Cotton trading range for the day is 20460-21480.
–Cotton dropped on profit booking after prices gained due to lower output estimates in the current season and moderate demand.
–In 2018/19, production of Cotton is estimated at 300.9 lakh bales, down about 7.4% compared to previous estimate of 324 lakh bales
–The USDA has cut India’s 2018-19 cotton output estimates 1.8% from earlier to 27.0 million bales, the agency said
–Cotton prices in spot market gained by 10.00 rupees and settled at 20550.00 rupees.
Courtesy: Kedia Commodities
Source: Commodityonline.com
