Technically MCX Cotton is under fresh selling as market has witnessed gain in open interest by 5.48% to settled at 2947 while prices down -280 rupees.
Now Cotton is getting support at 18296 and below same could see a test of 18243 level, And resistance is now likely to be seen at 18416, a move above could see prices testing 18483.
Cotton on MCX settled down by -1.5% at 18350 amid higher output amid weak export demand. India's 2017-18 cotton output estimated to rise at 30 million bales for September month compared to 29 million bales in August, showed United States Department of Agriculture (USDA) data.
Meanwhile, global cotton output forecast hiked to 120.75 million bales compared to previous month's estimates of 117.31 million bales, USDA said. USDA also raised forecast for United States cotton output to 21.76 million bales against 20.55 million bales in last month.
Prices of natural fibre were also down on lower export demand, said analysts. India's 2017-18 cotton export estimated at 4.20 million bales compared to 4.30 million bales in the previous month, showed USDA data.
Output of most kharif crops, barring cotton, is seen declining in Telangana due to a sharp fall in acreage following a dry spell during Jul-Aug, a senior official with the state farm department said.
In the Jun-Sep monsoon season so far, Telangana has received 577.5 mm of rainfall, 11% below normal, according to India Meteorological Department.
Cotton output in the state is seen rising 42% on year to 4.15 mln bales (1 bale = 170 kg), according to the first advance estimate shared by an official with the state farm department. Output of cotton is seen higher due to a sharp rise in acreage.
-- Cotton trading range for the day is 18243-18483.
--Cotton prices dropped amid higher output amid weak export demand.
--India's 2017-18 cotton output estimated to rise at 30 million bales for September month compared to 29 million bales in August, USDA data showed.
--USDA also raised forecast for United States cotton output to 21.76 million bales against 20.55 million bales in last month.
--Cotton prices in spot market dropped by 60.00 rupees and settled at 19930.00 rupees.
Courtesy: Kedia Commodities