Technically Cotton market is under fresh buying as market has witnessed gain in open interest by 15.19% to settled at 4641 while prices up 250 rupees.
Now MCX Cotton is getting support at 32110 and below same could see a test of 31910 levels, and resistance is now likely to be seen at 32470, a move above could see prices testing 32630.
Cotton yesterday settled up by 0.78% at 32320 in anticipation of a possible fall in production, and the remaining cotton stock is also low, while import demand from China remains high.
China will start a new round of sales from its cotton reserves, with a total 600,000 tonnes of imported and domestic cotton to be sold off in daily auctions, according to an official notice.
It is the second batch of cotton to be released from reserves this year and is designed to better meet demand for the fibre from spinning companies.
Both production estimates for the 2021/22 crop year and ending stocks in the U.S. were largely unchanged at 18.20 million bales and 3.40 million bales respectively, the USDA said in its November World Agricultural Supply and Demand Estimates (WASDE) report.
India’s cotton production in 2021-22 season is likely to be 360.13 lakh bales of 170 kg each (equivalent to 382.64 lakh running bales of 160 kg each), which is more by 7.13 lakh bales than the previous season’s crop of 353 lakh bales, the Cotton Association of India (CAI) has said in its first estimate for the new season beginning October 1, 2021. In spot market, Cotton dropped by 170 Rupees to end at 31760 Rupees.
--Cotton trading range for the day is 31910-32630.
--Cotton gained in anticipation of a possible fall in production.
--However upside seen limited as selling pressure intensified after demand from China eased.
--China will start a new round of sales from its cotton reserves, with a total 600,000 tonnes of imported and domestic cotton to be sold off in daily auctions
--In spot market, Cotton dropped by 170 Rupees to end at 31760 Rupees.
Courtesy: Kedia Commodities