MCX Cotton under fresh selling; Support seen at 19000
Commodity Online | December 11 2019
UPDATED 12:00:28 IST

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Technically Cotton market is under fresh selling as market has witnessed gain in open interest by 0.88% to settled at 2054 while prices down 60 rupees.

Now MCX Cotton is getting support at 19000 and below same could see a test of 18920 levels, and resistance is now likely to be seen at 19180, a move above could see prices testing 19280.

Cotton on MCX settled down by 0.31% at 19070 as the farmers are bringing dried cotton to the procurements centers as recommended by CCI. Their produce attracting the minimum support price (MSP) of Rs 5,500 per quintal.

The trend of bringing dried up produce to the yards is catching up rapidly. The Cotton Corporation of India (CCI) bought nearly 2 lakh bales until November 25 even as late arrivals and high moisture content restricted its buying program, said sources.

Arrivals began picking up and prices are ruling around government fixed minimum support price (MSP) in most producing centres.The state owned agency purchased highest quantity of 1.20 lakh bales in Telangana followed by 22,000 bales in the markets of Punjab and 19,000 bales in Rajasthan, sources said.

Total arrivals stood around 29.28 lakh bales so far. And a total of 8.48 lakh bales have arrived, higher against 6.15 lakh bales last week. Of this, 4.49 lakh bales were from Central India, followed by 2.13 lakh bales from South India in this week.

The arrivals from North India have started so the arrivals increased to around 1.85 lakh bales this week. Last year, the government agency purchased total 10.70 lakh bales of cotton and out of this 1.70 lakh bales sold in the market so far.

Trading Ideas:
--Cotton trading range for the day is 18920-19280.
--Cotton prices settled flat as the farmers are bringing dried cotton to the procurements centers as recommended by CCI.
--CCI bought nearly 2 lakh bales even as late arrivals and high moisture content restricted its buying program
--The arrivals from North India have started so the arrivals increased to around 1.85 lakh bales this week.
--Cotton prices in spot market gained by 180.00 rupees and settled at 18780.00 rupees.

Courtesy: Kedia Commodities      

Commodity Arrivals Rate
Mustard Oil 1.2 9400.00
Coconut Oil 2.5 16800.00
Arecanut 101 12250.00
Sugar 342 3402.00

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