Fresh buying seen in MCX Cotton

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Technically MCX Cotton is under fresh buying as market has witnessed gain in open interest by 0.87% to settled at 2207 while prices up 160 rupees.

Now Cotton is getting support at 18424 and below same could see a test of 18317 level, And resistance is now likely to be seen at 18604, a move above could see prices testing 18677.

Cotton on MCX settled up by 0.87% at 18530 amid loss of cotton due to heavy rains in Gujarat. However, good progress in cotton sowing in the country capped further gain.

As per latest data from Agricultural Ministry, cotton is planted in 111.2 lakh hectares (l ha) till last week, higher 20% compared to last year acreage of 92.3 lakh ha for same period.

The Cotton Association of India has increased its estimate for India’s cotton output in the year ending September to 33.7 mln bales (1 bale = 170 kg), the association said in its June report.

In its May report, the association had projected the country’s cotton crop at 33.6 mln bales.In the latest report, the association has increased its forecast for cotton import by 8% to 2.7 mln bales, while estimates for mill consumption was left unchanged at 27.0 mln bales.

The association has estimated cotton exports in 2016-17 (Oct-Sep) at 6.3 mln bales, compared with 6.0 mln bales projected in May. Production in the central zone, which includes Gujarat, Maharashtra, and Madhya Pradesh, is estimated at 19.75 mln bales, against 18.48 mln bales in the previous year, it said.

Trading Ideas:

–Cotton trading range for the day is 18317-18677.

–Cotton prices ended with gains amid loss of cotton due to heavy rains in Gujarat.

–As per latest data from Agricultural Ministry, cotton is planted in 111.2 lakh hectares (l ha) till last week, higher 20%.

–The Cotton Association of India has increased its estimate for India’s cotton output in the year ending September to 33.7 mln bales.

–Cotton prices in spot market gained by 190.00 rupees and settled at 20490.00 rupees.

Courtesy: Kedia Commodities

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