Technically Cotton market is under fresh selling as market has witnessed gain in open interest by 1.52% to settled at 1265 while prices down 100 rupees.
Now MCX Cotton is getting support at 19430 and below same could see a test of 19380 levels, and resistance is now likely to be seen at 19540, a move above could see prices testing 19600.
Cotton on MCX settled down by 0.51% at 19490 as global demand estimated to dip amid fears of damage to local crop. With harvest season approaching and cotton growers hoping for ‘handsome returns’ this kharif season, there is unpleasant news coming from the other end of the world.
The International Cotton Advisory Committee (ICAC), in its cotton summary for October 2019, noted that global production — projected at about 26.8 million tonnes — is expected to slightly outpace global consumption, projected at 26.5 million tonnes, for the 2019-20 year, which began from August.
This news comes at a time, when the cotton trade in India is looking at uncertain times with crop damage fears in the key growing regions of Madhya Pradesh and Gujarat, where heavy rainwater has flushed the cotton fields. A US Department of Agriculture (USDA) September 2019 report on the cotton market revealed that the US’ share in China’s total cotton imports fell to 18 per cent in 2018-19, down from 45 per cent in 2017-18.
Cotton Association of India (CAI) data showed that India’s cotton exports were 36 per cent lower, at 44 lakh bales, till September 30, while its imports almost doubled to 29 lakh bales. On global consumption, ICAC estimates that “even the major cotton consuming countries may see tepid growth in consumption, at about 2 per cent over last year”.
--Cotton trading range for the day is 19380-19600.
--Cotton prices dropped as global demand estimated to dip amid fears of damage to local crop.
--ICAC noted that global production projected at about 26.8 million tonnes — is expected to slightly outpace global consumption, projected at 26.5 million tonnes.
--The US’ share in China’s total cotton imports fell to 18 per cent in 2018-19, down from 45 per cent in 2017-18, USDA report showed.
--Cotton prices in spot market dropped by 130.00 rupees and settled at 19650.00 rupees.
Courtesy: Kedia Commodities