Fresh selling seen in MCX Cotton; Resistance seen at 18660

0
32

Technically MCX Cotton is under fresh selling as market has witnessed gain in open interest by 0.05% to settled at 2064 while prices down -150 rupees.

Now Cotton is getting support at 18510 and below same could see a test of 18430 level, And resistance is now likely to be seen at 18660, a move above could see prices testing 18730.

Cotton on MCX settled down -0.8% at 18590 tracking weakness in spot demand on profit booking after prices rose due to concern over loss due to heavy rains.

Moreover, industry sources believe that India’s cotton yield may decline on whitefly, pink bollworm attacks.

A substantial cotton area came under whitefly attack in Punjab and Haryana, pink bollworm was reported to have attacked standing crop in Maharashtra, Andhra Pradesh and Gujarat.

However, 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.

All India cotton arrivals are estimated at around 4,800 bales on Aug 9 compared to 5,300 bales in the previous day. Fibre arrivals in Gujarat were 2,000 bales compared to 2,500 bales while in Maharashtra arrivals were 1,000 bales, unchanged from the previous day.

Cotton arrivals in Andhra Pradesh and Telangana were 400 bales and 1,000 bales respectively. Arrivals of fibre in Karnataka were 400 bales unchanged from the previous day.

On the back of a favorable weather condition, increased acreage and yield; the Chinese govt. forecasted the country to produce 5.28 MT of cotton in 2017-18. Along with it, cotton consumption by the country is also projected to lie at 7.9 MT during 2017-18.

Trading Ideas:

–Cotton trading range for the day is 18430-18730.

–Cotton prices dropped tracking weakness in spot demand on profit booking after prices rose due to concern over loss due to heavy rains.

–Moreover, industry sources believe that India’s cotton yield may decline on whitefly, pink bollworm attacks.

–All India cotton arrivals are estimated at around 4,800 bales on Aug 9 compared to 5,300 bales in the previous day

–Cotton prices in spot market dropped by 20.00 rupees and settled at 20410.00 rupees.

Courtesy: Kedia Commodities

LEAVE A REPLY