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 up by 0.72% at 18160 on concern over crop damage reported in Haryana, Telangana and Maharashtra after heavy rainfall.
According to the Fourth Advance Estimates of Production of Commercial Crops for 2019-20, released by the Ministry of Agriculture and Farmers Welfare states that production of cotton is estimated at 35.49 million bales (of 170 kg each) in the current year, much higher than 28.04 million bales produced last year.
With heavy rains lashing Telangana over two weeks during the mid of August, farmers growing cotton are facing threats from parawilt and phytophthora, respectively. Cotton, which has been sown on over 60 lakh acres in the State, is vulnerable to parawilt, a physiological disorder, due to prolonged waterlogging of the fields.
Cotton harvesting in Malwa and neighbouring areas in Punjab may be delayed by 15 days due to heavy rainfall and labour shortage amid apprehensions over spread of corona virus.
Cotton Corporation of India (CCI) has decided to sell a part of the surplus stock of about 15 to 20 lakh bales to Bangladesh, that would take place on a government-to-government basis and the shipments could start from next month onwards. Export prices will be decided by the two governments using the Cotlook index.
--Cotton trading range for the day is 17770-18370.
--Cotton prices seen supported on concern over crop damage reported after heavy rainfall.
--Cotton harvesting in Malwa and neighbouring areas in Punjab may be delayed by 15 days due to heavy rainfall and labour shortage
--Production of cotton is estimated at 35.49 million bales (of 170 kg each) in the current year, much higher than 28.04 million bales produced last year.
--In spot market, Cotton dropped by 70 Rupees to end at 17500 Rupees.
Courtesy: Kedia Commodities