Technically Cotton market is under fresh selling as market has witnessed gain in open interest by 4.64% to settled at 2009 while prices down 10 rupees.
Now MCX Cotton is getting support at 27950 and below same could see a test of 27750 levels, and resistance is now likely to be seen at 28500, a move above could see prices testing 28850.
Cotton yesterday settled down by 0.04% at 28140 as pared gains on profit booking after prices rose amid supply concerns, shipping constraints, and growing demand from top user China and other buyers like Turkey and Pakistan.
Heavy rains are threatening crops in major US growing regions including Texas and the Mississippi Delta, while a pest called pink bollworm is rapidly spreading across fields.
Meanwhile, the US Department of Agriculture said US cotton exports in 2020-21 were the highest in 15 years at 16.4 million bales.
The commodity has surged nearly 50% in the past year amid projections for two straight world deficits through 2021-22. The pink bollworm attack on cotton crop in Punjab has been found to be much beyond earlier anticipated.
Over one fourth area in biggest cotton growing districts of Bathinda and Mansa are disturbed on the count though earlier the attack was felt in around 10-15% area in these districts.
Cotton procurement for 2021-22 kharif season should commence from the first week of November, Minister for Cooperation and Marketing Balasaheb Patil said. At a meeting, Patil took the stock of cotton cultivation in Maharashtra.
He directed the department to start early cotton procurement from November first week to facilitate timely sale and income for farmers. In spot market, Cotton dropped by 70 Rupees to end at 27490 Rupees.
Trading Ideas:
–Cotton trading range for the day is 27750-28850.
–Cotton pared gains on profit booking after prices rose amid supply concerns, and growing demand from China and other buyers like Turkey and Pakistan.
–The pink bollworm attack on cotton crop in Punjab has been found to be much beyond earlier anticipated.
–Heavy rains are threatening crops in major US growing regions including Texas and the Mississippi Delta
–In spot market, Cotton dropped by 70 Rupees to end at 27490 Rupees.
Courtesy: Kedia Commodities
Source: Comodity Online
