MCX Cotton under fresh selling; Resistance seen at 22470
Commodity Online | April 24 2019
UPDATED 12:00:41 IST

MCX Mentha Oil under short covering; Support seen at 1459.1

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NCDEX Chana under long liquidation; Support seen at 4610

MCX Nickel under short covering; Support seen at 839.5

Short Covering seen in MCX Cotton

Technically Cotton market is under fresh selling as market has witnessed gain in open interest by 17.25% to settled at 14096 while prices down 120 rupees.

Now MCX Cotton is getting support at 22200 and below same could see a test of 22080 level, And resistance is now likely to be seen at 22470, a move above could see prices testing 22620.

Cotton on MCX settled down by 0.53% at 22330 on profit booking after prices gained on reports of lower production and improving demand. Cotton supply is dwindling quickly as 2018-19 crop is likely to be much lower than the initial projection of around 350 lakh bales.

In 2018/19, cotton output is estimated at 300.9 l-bales (of 170 kg each), down about 7.4% compared to previous estimate of 324 l-bales as per latest govt Adv Est. CAI cuts 2018-19 production estimate further by 2 l-bales to 328 l-bales for the year 2018-19. however, higher imports of 27 l-bales (Vs 15) and lower exports of 50 lakh bales (Vs 69) for 2018/19 season is bearish.

According to data compiled by DGCIS, country exported 95,712 tonnes (t) of cotton raw including wastes in Feb, down 20.8% compared to 148,948 t last year. Moreover, Cotton Corporation of India (CCI) has commenced sale of the commodity procured so far in the current marketing season.

Moreover, Cotton Corporation of India (CCI) has commenced sale of the commodity procured so far in the current marketing season. The agency has procured around 1.1 million bales of cotton in the ongoing marketing season that started on October 1. Cotton Association of India (CAI) has cut the crop output estimate again by 200,000 bales of 170 kg each to a 10-year low of 32.8 million bales this season.

Trading Ideas:
--Cotton trading range for the day is 22080-22620.
--Cotton dropped on profit booking after prices gained on reports of lower production and improving demand.
--Cotton supply is dwindling quickly as 2018-19 crop is likely to be much lower than the initial projection of around 350 lakh bales.
--According to data compiled by DGCIS, country exported 95,712 tonnes (t) of cotton raw including wastes in Feb, down 20.8%.
--Cotton prices in spot market dropped by 80.00 rupees and settled at 22360.00 rupees.

Courtesy: Kedia Commodities

Commodity Arrivals Rate
Mustard Oil 1.2 8800.00
Coconut Oil 1 18500.00
Arecanut 3.5 2400.00
Sugar 0.5 4000.00

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