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Long liquidation seen in MCX Cotton
Commodity Online | December 07 2017
UPDATED 12:24:45 IST

MCX Nickel under short covering; Resistance seen at 723.3

Zinc likely to trade in a range between 201.2-207 levels

MCX Cotton under short covering

Fresh buying seen in MCX Cardamom; Resistance seen at 1086

Fresh selling seen in NCDEX Jeera ; Support seen at 21240

Technically MCX Cotton is under long liquidation as market has witnessed drop in open interest by -4.91% to settled at 4957 while prices down -20 rupees.

Now Cotton is getting support at 18800 and below same could see a test of 18700 level, And resistance is now likely to be seen at 18970, a move above could see prices testing 19040.

Cotton on MCX settled down by -0.11% at 18900 on profit booking after the prices have been higher on expectation of big fall in output due to pink bollworm attacks in some states. Reports of decline in prices in overseas market too dampened the market sentiment.

The International Cotton Advisory Committee increased their projection for 2017-18 world cotton production 0.18 million ton to 25.74 million ton. Expectations of higher global output may curb export demand of Indian cotton.

Stocks of natural fibre with mills are limited as they were awaiting decline in prices with the increase in supplies. However, daily arrivals have yet to touch 200,000 bales. The Cotton Corporation of India (CCI) has procured 1.29 lakh tonnes (lt) of cotton in Telangana so far this season.

The CCI made these purchases from 243 centres that it set up for the season. United States Department of Agriculture (USDA) maintained India's cotton output and consumption forecast for 2017-18, showed United States Department of Agriculture (USDA) in its World Agricultural Supply and Demand Estimates (WASDE) report.

USDA maintained India's 2017-18 cotton output at 30 million bales (480 lb bales) for October month unchanged from last month. USDA also maintained India's fibre demand to 24.50 million tons unchanged from the previous estimates.

Trading Ideas:

--Cotton trading range for the day is 18700-19040.

--Cotton dropped on profit booking after the prices have been higher on expectation of big fall in output due to pink bollworm attacks in some states.

--Reports of decline in prices in overseas market too dampened the market sentiment.

--The International Cotton Advisory Committee increased their projection for 2017-18 world cotton production 0.18 million ton to 25.74 million ton.

--Cotton prices in spot market dropped by 140.00 rupees and settled at 18440.00 rupees.

Courtesy: Kedia Commodities

Commodity Arrivals Rate
Mustard Oil 6.4 9600.00
Coconut Oil 3.5 22900.00
Arecanut 40 2350.00
Sugar NR 4450.00

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