MCX Cotton likely to trade between 21660-22200 levels
Commodity Online | May 11 2021
UPDATED 12:00:14 IST

NCDEX Chana may trade between 4983-5289 levels

MCX Cotton under long liquidation; Support seen at 23430

NCDEX Jeera under fresh selling; Support seen at 13550

NCDEX Turmeric likely to move in a range of 7394-7946

NCDEX Mustard Seed under fresh selling; Resistance seen at 6584

Technically Cotton market is under short covering as market has witnessed drop in open interest by 13.36% to settled at 6284 while prices up 50 rupees.

Now MCX Cotton is getting support at 21770 and below same could see a test of 21660 levels, and resistance is now likely to be seen at 22040, a move above could see prices testing 22200.

Cotton yesterday settled up by 0.23% at 21870 as exports of cotton and cotton products are rising, providing the best chance of recovery in the sector. However upside seen limited amid chances of some rain in parts of Texas, but persistent concerns over supply kept prices on track for a weekly gain.

The U.S. Department of Agriculture's weekly export sales report showed net sales of 63,700 running bales for 2020/2021, down 17% from the previous week and 56% from the prior 4-week average.

Post forecasts India's MY 2021/22 cotton production will increase by four percent to 29.5 million 480 lb. bales on a reduced area of 12.9 million hectares. Yields are expected to improve by five percent based on the expectation of a normal monsoon forecast by the Indian Meteorological Department.

In April, cotton fiber and yarn prices decreased due to a surge in COVID-19 cases, which has led to a slowdown in the production and consumption of textile products.

Domestic retail demand remains severely hampered by the pandemic; however, exports of cotton and cotton products are rising, providing the best chance of recovery in the sector.

The Committee on Cotton Production and Consumption expects production during the current season (October 2020 to September 2021) to be at 360 lakh bales, slightly lower than the 2019-2020 estimate of 365 lakh bales. In spot market, Cotton gained by 50 Rupees to end at 22200 Rupees.

Trading Ideas:
--Cotton trading range for the day is 21660-22200.
--Cotton prices gained as exports of cotton and cotton products are rising, providing the best chance of recovery in the sector.
--India's MY 2021/22 cotton production will increase by four percent to 29.5 million 480 lb. bales
--Yields are expected to improve by five percent based on the expectation of a normal monsoon forecast by the Indian Meteorological Department.
--In spot market, Cotton gained by 50 Rupees to end at 22200 Rupees.

Courtesy: Kedia Commodities

Commodity Arrivals Rate
Snake Gourd 1 1200.00
Green Chilli Seeds 1 1500.00
Ginger 2 1700.00
Cucumber 1 1400.00

More