MCX Cotton may trade between 21440-22100 levels
Commodity Online | April 16 2021
UPDATED 12:00:35 IST

NCDEX Turmeric under long liquidation; Support seen at 7602

NCDEX Mustard Seed under fresh buying; Support seen at 7036

MCX Crude Palm Oil under fresh buying; Resistance seen at 1208.2

NCDEX Ref. Soya Oil under fresh buying; Support seen at 1423

NCDEX Soyabean likely to move in a range of 7174-7598

Technically Cotton market is under short covering as market has witnessed drop in open interest by 1.46% to settled at 6407 while prices up 230 rupees.

Now MCX Cotton is getting support at 21560 and below same could see a test of 21430 levels, and resistance is now likely to be seen at 21770, a move above could see prices testing 21850.

Cotton yesterday settled up by 0.46% at 21780 tracking rise in overseas prices as traders awaited a federal report expected to show higher weekly exports of the natural fiber.

The U.S. Agriculture Department's weekly crop progress report showed 8% of the total 2021 cotton crop was planted in the week ending April 11, slightly above the five-year average of 7%.

The cotton area harvested and the cotton production in India have shown a significant rise in the MY (market year) 2019/20 as compared to the area harvested in MY 2018/19.

The cotton area harvested, and the cotton production has increased by 5.56 per cent and 14.34 per cent to 13.30 million hectares and 29.50 million 480-lb bales respectively in MY 2019/20 over MY 2018/19.

It is expected to increase in the upcoming MY 2020/21 with higher demand for cotton yarn and fabric for exports. It also triggered cotton fibre and yarn prices in the beginning of the year 2021.

The purchase of cotton by the government of India under the MSP programme has been done in various states which has secured approximately more than 24.00 per cent of total production.

The area harvested and production is expected to move up to 13.40 million hectares and 29.50 million 480-lb bales in the MY 2020/21. In spot market, Cotton dropped by 40 Rupees to end at 21920 Rupees.

Trading Ideas:
--Cotton trading range for the day is 21440-22100.
--Cotton prices gained tracking rise in overseas prices as traders awaited a federal report expected to show higher weekly exports of the natural fiber.
--USDA weekly crop progress report showed 8% of the total 2021 cotton crop was planted in the week ending April 11, slightly above the five-year average of 7%.
--The cotton area harvested and the cotton production in India have shown a significant rise in the MY (market year) 2019/20 as compared to the area harvested in MY 2018/19.
--In spot market, Cotton gained by 120 Rupees to end at 22040 Rupees.

Courtesy: Kedia Commodities

Commodity Arrivals Rate
Mustard Oil 5 17200.00
Ghee NR 42000.00
Coconut Oil 0.1 19000.00
Tamarind Seeds 10 3200.00

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