Technically Cotton market is under fresh buying as market has witnessed gain in open interest by 1.23% to settled at 1813 while prices up 10 rupees.
Now MCX Cotton is getting support at 25510 and below same could see a test of 25420 levels, and resistance is now likely to be seen at 25740, a move above could see prices testing 25880.
Cotton yesterday settled up by 0.04% at 25610 as the latest spell of heavy rains in Gujarat may appear to have saved the State from sinking into a drought, but for the current kharif crops such as cotton, it has pushed back the harvest period by at least 15 days and also weakened the prospects of kharif groundnut due to waterlogging.
The Punjab agriculture department directed all eight cotton-growing districts to immediately start a drive to check the spread of pink bollworm after an extensive infestation of the deadly disease was reported in adjoining districts of Haryana and parts of Rajasthan.
In September WASDE report, the USDA projected U.S. production at 18.5 million bales, 1.2 million bales higher than the previous month.
The agency, however, increased its estimate for U.S. exports by 500,000 bales to 15.5 million bales, leaving its forecast for ending stocks at 3.7 million bales.
Fitch Solutions said it expects cotton production in India to fall by one per cent year-on-year to 28.3 million 480lb bales in 2021-22 (previously two per cent growth) due to lacklustre rainfall throughout July and August, the main planting times.
Rainfall in Gujarat is almost 30 per cent below its long-term average as of mid-September which has reduced the area available for planting and weighed on yields. In spot market, Cotton dropped by 40 Rupees to end at 26430 Rupees.
--Cotton trading range for the day is 25420-25880.
--Cotton gained as Cotton harvest likely to be delayed amid flooding in Saurashtra region in Gujarat
--Alert sounded in Punjab’s cotton belt after pink bollworm attack in Haryana
--According to the CCPC, cotton closing stocks, last season were 120.95 lakh bales, and for the current season, they have been estimated at 97.95.
--In spot market, Cotton dropped by 40 Rupees to end at 26430 Rupees.
Courtesy: Kedia Commodities