Technically Cotton market is under fresh buying as market has witnessed gain in open interest by 2.38% to settled at 4734 while prices up 490 rupees.
Now MCX Cotton is getting support at 31090 and below same could see a test of 30710 levels, and resistance is now likely to be seen at 31690, a move above could see prices testing 31910.Cotton yesterday settled up by 1.58% at 31460 as unseasonal rains in parts of Gujarat has worried cotton growers.
According to the Punjab Mandi Board data, 9.57 lakh quintal of cotton was purchased in the state till Saturday. Of that, only 5,545 quintal produce was bought by the private players below MSP.
Mandi Board cotton state coordinator Rajnish Goel said this time the cotton arrival in the purchase centers across the rate was nearly 54% less in comparison with the last year. Farmers in Saurasthra and Central Gujarat informed that a drastic change in the climate with rains and strong winds in some parts has impacted cotton.
In its first advance estimate, the Gujarat Government has projected cotton production of 80.95 lakh bales (each of 170 kg). The International Cotton Advisory Committee has lowered its forecast for global prices for 2021-22 (Aug-Jul) due to a rise in global production and ending stocks estimate, the agency said in a report.
In 2021-22 season, the committee estimated global ending stocks for the season at 20.5 mln tn, slightly higher than 20.4 mln tn in the previous season.
Global consumption is seen almost steady at 25.6 mln tn, it said. The agency sees global export for the season at 10.2 mln tn, as against 10.6 mln tn a year ago. In spot market, Cotton gained by 430 Rupees to end at 31440 Rupees.
Trading Ideas:
–Cotton trading range for the day is 31200-31840.
–Cotton prices gained as unseasonal rains in parts of Gujarat has worried cotton growers.
–According to the Punjab Mandi Board data, 9.57 lakh quintal of cotton was purchased in the state till Saturday.
–In its first advance estimate, the Gujarat Government has projected cotton production of 80.95 lakh bales.
–In spot market, Cotton gained by 140 Rupees to end at 31580 Rupees.
Courtesy: Kedia Commodities
Source: Comodity Online
