MCX Cotton under long liquidation; Support seen at 19790
Commodity Online | November 27 2020
UPDATED 12:00:08 IST

MCX Gold under short covering; Resistance seen at 49465

MCX Silver under long liquidation; Support seen at 65712

MCX Crude Oil under fresh selling; Support seen at 3781

MCX Natural Gas under long liquidation; Support seen at 176.7

MCX Copper under fresh selling; Resistance seen at 614.8

Technically Cotton market is under long liquidation as market has witnessed drop in open interest by 3.7% to settled at 2293 while prices down 310 rupees.

Now MCX Cotton is getting support at 19790 and below same could see a test of 19650 levels, and resistance is now likely to be seen at 20180, a move above could see prices testing 20430.

Cotton yesterday settled down by 1.53% at 19920 on profit booking after prices gained as there is a good demand for CCI cotton and spinning mills are getting back to 90% capacity.

The Cotton Corporation of India (CCI) has commenced procurement for the 2020-21 season and is ready to procure around 100 lakh bales.

Procurement has commenced in the north zone from October 1 since the season begins early in these regions. Around 8 lakh bales have so far been procured.

There has been a record carry over stock of around 107.5 lakh bales, but the CCI says 70 lakh bales of the total purchase of 115 lakh bales were disposed and some 45 lakh bales remain.

For 2020-21 the cotton area in India is estimated at 129.57 lakh hectares and production as projected by the Centre’s First Advance Estimates in September 2020, is at about 371 lakh bales.

But the torrential rains received in third week of October, have damaged the crop to a large extent. Also, Cotton Association of India has estimated an output of 356 lakh bales (360 lakh bales).

Trading Ideas:
--Cotton trading range for the day is 19650-20430.
--Cotton settled down on profit booking after prices gained as there is a good demand for CCI cotton and spinning mills are getting back to 90% capacity.
--The Cotton Corporation of India (CCI) has commenced procurement for the 2020-21 season and is ready to procure around 100 lakh bales.
--Procurement has commenced in the north zone from October 1 since the season begins early in these regions.
--In spot market, Cotton dropped by 100 Rupees to end at 20070 Rupees.

Courtesy: Kedia Commodities

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