Technically Cotton market is under long liquidation as market has witnessed drop in open interest by 0.21% to settled at 6729 while prices down 30 rupees.
Now MCX Cotton is getting support at 20180 and below same could see a test of 20120 levels, and resistance is now likely to be seen at 20340, a move above could see prices testing 20440.
"Cotton on MCX settled down 0.15% at 20250 due to improved sowing, higher imports and weak international prices. Area in Gujarat under cotton is higher as on 29-Jul-19 at 23.76 lakh ha compared to 25.5 lakh ha last year.
Indian cotton production for the 2019-20 season is seen at 29 million 480 lb bales, the U.S. Department of Agriculture (USDA) said in a report down 1% from earlier estimates.
The production decline is the result of reduced plantings in central Maharashtra, where farmers are shifting towards soybeans as well as in Karnataka, where farmers are switching to pulses and corn, the attache said.
While overall plantings are expected to fall, they are happening at an accelerated rate this season in part because of the delayed monsoon, the report said.
As of July 19, cotton planted area was 5% higher than the five-year average, with plantings especially accelerated in the states of Rajasthan and Odisha.
At 29 million bales, the anticipated 2019-20 output is down only slightly from the 29.3 million bales forecasted earlier this year, but still about 9% larger than the 2018-19 crop.
USDA increase production forecast for cotton in India by 1.75% this month to 29 million bales while the stocks jump by 17.8% to 8.93 m-bales.
--Cotton trading range for the day is 20120-20440.
--Cotton prices settled flat due to improved sowing, higher imports and weak international prices.
--Indian cotton production for the 2019-20 season is seen at 29 million 480 lb bales, down 1% from earlier estimates.
--Area in Gujarat under cotton is higher as on 29-Jul-19 at 23.76 lakh ha compared to 25.5 lakh ha last year.
--Cotton prices in spot market gained by 10.00 rupees and settled at 20100.00 rupees.
Courtesy: Kedia Commodities