Technically Cotton market is under fresh selling as market has witnessed gain in open interest by 1.91% to settled at 2456 while prices remain unchanged 0 rupees.
Now MCX Cotton is getting support at 19920 and below same could see a test of 19770 levels, and resistance is now likely to be seen at 20150, a move above could see prices testing 20230.
Cotton yesterday settled remain unchangeby 0% at 20060 on profit booking after prices gained as farmers are being dogged by a major incidence of rotting bolls and pest attack.Extended rains have led to cotton bolls rotting on the plants, rendering a lot of the produce useless.
This has been followed by infestation of pink bollworm, which even in the normal course occurs during the October-November period. However, farmers say the incidence is higher than other years leading to losses in output.
Indian cotton is currently the cheapest in the world and this has created new possibilities for exporters. In addition to traditional markets such as Bangladesh and China, traders are also eyeing markets such as Turkey, Vietnam and Indonesia for export.
The Ministry of Agriculture in its first advance estimate of commercial crops for 2020-21 season (October-September) has pegged cotton production at 371.18 lakh bales (of 170 kg each).
Last week, trade body Cotton Association of India (CAI) estimated cotton production at 356 lakh bales but said that the crop had been affected by excess rains in some regions in the country besides infestation of pink bollworm.
--Cotton trading range for the day is 19770-20230.
--Cotton settled flat after prices gained as farmers are being dogged by a major incidence of rotting bolls and pest attack.
--Extended rains have led to cotton bolls rotting on the plants, rendering a lot of the produce useless.
--However, farmers say the incidence is higher than other years leading to losses in output.
--In spot market, Cotton dropped by 270 Rupees to end at 19680 Rupees.
Courtesy: Kedia Commodities