Technically MCX Cotton is under short covering as market has witnessed drop in open interest by -0.22% to settled at 2236 while prices up 210 rupees.
Now Cotton is getting support at 18614 and below same could see a test of 18447 level, And resistance is now likely to be seen at 18894, a move above could see prices testing 19007.
Cotton on MCX settled up by 1.13% at 18780 on concern over loss due to heavy rains. Moreover, as per farm ministry, incidents of pink bollworm attacks have been reported in many parts of key cotton growing areas in south India and Gujarat.
However, good progress in cotton sowing in the country capped further gain. As per latest data from Agricultural Ministry, cotton is planted in 114.3 lakh hectares (l ha) till last week, higher 18.2% compared to last year acreage 96.5 lakh ha for same period.
Notwithstanding crop damage due to floods in Gujarat, the largest cotton producing state, India’s cotton output in the forthcoming 2017-18 season starting October is seen increasing by 10-15 per cent on rise in acreage across the country.
Besides, a favourable monsoon in most parts of key growing states such as Maharashtra and Andhra Pradesh, and in North India, is aiding the output.
The cotton trade estimates the output to be higher, by 10-15 per cent, for 2017-18 over last year’s output of 337.25 lakh bales of 170 kg each.
Per the Union Ministry of Agriculture, cotton had been sown on 111.55 lakh hectares till July 28, as against 92.33 lakh hectares witnessed for the same time last year, thereby indicating an increase of close to 21 per cent in the acreage.
Maharashtra has registered kharif cotton sowing of over 38.47 lakh hectares, while in Gujarat the area stood at 25.84 lakh hectares.
–Cotton trading range for the day is 18447-19007.
–Cotton ended with gains on concern over loss due to heavy rains.
–Moreover, as per farm ministry, incidents of pink bollworm attacks have been reported in many parts of key cotton growing areas.
–As per latest data from Agricultural Ministry, cotton is planted in 114.3 lakh hectares (l ha) till last week, higher 18.2%.
–Cotton prices in spot market dropped by 40.00 rupees and settled at 20430.00 rupees.
Courtesy: Kedia Commodities