Technically Cotton market is under fresh buying as market has witnessed gain in open interest by 0.58% to settled at 2959 while prices up 150 rupees.
Now MCX Cotton is getting support at 18266 and below same could see a test of 18153 level, And resistance is now likely to be seen at 18446, a move above could see prices testing 18513.
Cotton on MCX settled up by 0.82% at 18380on estimation of lower output and strong demand. USDA maintained India's 2017-18 cotton output at 30 million bales for November month unchanged from October month.
Moreover, USDA trimmed world's ending stocks to 90.88 million bales in November compared to 92.38 million bales last month while the beginning stocks are seen dip at 88.67 million bales compared to 89.57 million bales, which may also keep prices up. USDA hiked consumption of cotton in China at 39 million bales compared to the last estimation of 38.50 million bales.
India's demand for fibre is also expected to improve in the near-term due to the fresh arrivals in the market. At a time when cotton has started to arrive in the market, dragging the price down, the Cotton Corporation of India (CCI) has begun procurement operations at select places in Gujarat and Telangana.
According to top CCI officials, the agency will procure at important cotton growing locations as and when the prices go below the Minimum Support Price (MSP) level once the arrivals gather pace, most likely after November 15. According to CCI officials, procurement in other States, including Maharashtra, Andhra Pradesh and Karnataka, will begin once the arrivals pick up.
--Cotton trading range for the day is 18153-18513.
--Cotton prices gained on estimation of lower output and strong demand.
--USDA maintained India's 2017-18 cotton output at 30 million bales for November month unchanged from October month.
--Moreover, USDA trimmed world's ending stocks to 90.88 million bales in November compared to 92.38 million bales last month.
--Cotton prices in spot market gained by 90.00 rupees and settled at 18170.00 rupees.
Courtesy: Kedia Commodities