MCX Cotton likely to move in a range of 21270-21770
Commodity Online | June 25 2019
UPDATED 12:00:18 IST

NCDEX Soyabean likely to move in a range of 3583-3671

MCX Crude Oil under long liquidation; Support seen at 3743

MCX Silver under fresh buying; Resistance seen at 40939

MCX Gold under short covering; Support seen at 34961

NCDEX Chana under short covering; Resistance seen at 4345

Technically MCX Cotton is getting support at 21390 and below same could see a test of 21270 level, And resistance is now likely to be seen at 21640, a move above could see prices testing 21770.

Cotton on MCX settled down by 0.56% at 21500 on profit booking after prices gained as prices remained supported due to deficit monsoon rainfall in major cotton growing states of India.

Farmers in northern region of India has shown good interest to cultivate cotton over the other commercial crop due to better realization thereby overall acreages of cotton in northern states like Punjab, Rajasthan and Haryana has increased during year 2019-20.

As per the data compiled by ministry of agriculture cotton acreages in Punjab has increased by 41% y/y to 4 lakh hectare this year wherein same has expanded by 5% y/y to 6.35 lakh hectare in Haryana. All India cotton acreages was reported at 13.51 lakh hectare till 6th June compare to the 12.48 lakh hectare of prior year for corresponding period.

USDA increased estimates for world inventory levels from 75.69 million bales to 77.26 million bales wherein it was increased up to 7.58 million bales compare to 7.23 million bales of prior month. USDA kept cotton production number for year 2019-20 unchanged for India at 28.50 Million bales of 480 each where in consumption was projected at 25.3 million bales ( 324.4 lakh bales ).

Monsoon rainfall for Gujarat was reported at 21% of LPA wherein it was reported at Maharashtra and Telangana at 71% of LPA and 63% of LPA respectively. The total cotton supply estimated by the CAI during the period from October 2018 to May 2019 each which consists of the arrivals of 287.72 lakh bales upto 31st May 2019.

Trading Ideas:
--Cotton trading range for the day is 21270-21770.
--Cotton dropped on profit booking after prices gained as prices remained supported due to deficit monsoon rainfall
--Cotton acreages in Punjab has increased by 41% y/y to 4 lakh hectare this year wherein same has expanded by 5% y/y to 6.35 lakh hectare in Haryana.
--USDA kept cotton production number for year 2019-20 unchanged for India at 28.50 Million bales of 480 each.
--Cotton prices in spot market dropped by 120.00 rupees and settled at 22000.00 rupees.

Courtesy: Kedia Commodities

Commodity Arrivals Rate
Mustard Oil 250 9000.00
Coconut Oil 0.1 19800.00
Arecanut 35 23000.00
Sugar NR 3800.00

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