Technically Cotton market is under fresh buying as market has witnessed gain in open interest by 5.56% to settled at 760 while prices up 50 rupees.
Now MCX Cotton is getting support at 17950 and below same could see a test of 17880 levels, and resistance is now likely to be seen at 18080, a move above could see prices testing 18140.
Cotton yesterday settled down by 0.56% at 17880 as production is projected to rise mainly due to higher acreage under the fibre crop and adequate rains in key producing states. Timely and well distributed rains across the country are likely to boost yields compared to 2019-20 season.
The area under cotton in the country was at 12.9 mln ha so far, up 2% on year, according to farm ministry data. Of the total area, around 11.6 mln ha or nearly 90% of the area is under Bt cotton.
Sowing has almost come to an end, and so far acreage in most states, barring Andhra Pradesh, Gujarat and Tamil Nadu, has surpassed the normal area for the season.
After witnessing a major slump in the lockdown period due to procurement issues, India’s cotton exports seem set to revive. According to Indian Cotton Association’s estimates, cotton exports are now expected to touch 65 lakh bales this year against its June estimate of 40 lakh bales — a 63 per cent improvement.
Last year, India exported 50 lakh bales of cotton, showed data from Cotton Corporation of India (CCI). This growth is expected in the backdrop of strong global demand for mask and surgical gown production along with lower domestic prices, which have made foreign sales economically viable.
--Cotton trading range for the day is 17780-18020.
--Cotton prices dropped as production is projected to rise mainly due to higher acreage under the fibre crop
--Timely and well distributed rains across the country are likely to boost yields compared to 2019-20 season.
--The area under cotton in the country was at 12.9 mln ha so far, up 2% on year, according to farm ministry data.
--In spot market, Cotton gained by 140 Rupees to end at 17490 Rupees.
Courtesy: Kedia Commodities