Now MCX Cotton is getting support at 20420 and below same could see a test of 20320 level, And resistance is now likely to be seen at 20680, a move above could see prices testing 20840.
Cotton on MCX settled down by 0.34% at 20510 on profit booking after prices gained amid reports of lower production from major growing. The International Cotton Advisory Committee (ICAC) recently stated that India's cotton production is expected to dip by 7% due to insufficient rainfall in major growing regions, reports said.
Adverse climatic conditions and water shortage coupled with a static growing area are set to knock India off its No 1 perch in cotton production worldwide, report added. As per the latest international reports, India will lose its top cotton producer tag to China for the year 2018-19, which has shown improved yields with better farming practices.
Cotton output in China is expected to increase by about 1% to 5.94 million tons this year. According to Cotton Association of India (CAI), India's cotton output is expected to dip at 33.5 million bales for 2018-19, lowest since 2010-11, when it reported 33.225 million bales.
CAI trimmed 2018-19 cotton output to 33.5 million bales of 170 kg each as farmers have uprooted nearly 70% plants in Gujarat, Maharashtra and Telangana due to moisture stress.
CAI lowered Gujarat's cotton crop estimate by 150,000 bales and Maharashtra and Telangana by 200,000 bales each. India is likely to produce 33.5 million bales of cotton in the 2018/19 season that started on Oct. 1, down 1.5 percent from an earlier estimate, a leading trade body said.
--Cotton trading range for the day is 20320-20840.
--Cotton dropped on profit booking after prices gained amid reports of lower production from major growing.
--ICAC recently stated that India's cotton production is expected to dip by 7% due to insufficient rainfall in major growing regions
--Cotton output in China is expected to increase by about 1% to 5.94 million tons this year.
--Cotton prices in spot market gained by 20.00 rupees and settled at 20550.00 rupees.
Courtesy: Kedia Commodities