MCX Cotton under long liquidation
Commodity Online | November 22 2019
UPDATED 12:00:24 IST

MCX Mentha Oil under fresh buying; Resistance seen at 1321.4

NCDEX Chana under fresh buying; Resistance seen at 4423

MCX Cotton under fresh selling; Support seen at 19000

NCDEX Jeera under fresh buying; Support seen at 15790

MCX Aluminium may trade between 131.7-133.1 levels

Technically Cotton market is under long liquidation as market has witnessed drop in open interest by 6.14% to settled at 1100 while prices down 130 rupees.

Now MCX Cotton is getting support at 18980 and below same could see a test of 18940 levels, and resistance is now likely to be seen at 19090, a move above could see prices testing 19160.

Cotton on MCX settled down by 0.68% at 19020 due to improved sowing, higher imports and weak international prices.

USDA lowered India's 2019-20 cotton crop to 300 bales (each bale of 480 pounds) down 5 lakh bales it projected in October due to adverse weather conditions in some states However, the crop is higher than 2018-19 when pest attack in Maharashtra and Telangana and erratic rains in Gujarat hit yield.

USDA hiked India's 2019-20 cotton import numbers to 18 lakh bales from last month's estimates of 16 lakh bales. USDA lowered its domestic consumption to 245 lakh bales from its October estimates of 247.50 lakh bales.

India's cotton sowing jumped to 127.67 lakh hectares until September 27 from 121.05 lakh hectares a year ago, showed agriculture ministry data. In its November report the USDA lowered its forecast for global cotton production in 2019-20 to 1,219.4 lakh bales.

This month's report 2019-20 world cotton forecasts include lower production, lower ending stocks and higher world trade, said USDA. World production is reduced nearly 30 lakh bales, with reductions occurring primarily in the United States, Pakistan, India, and China.

Trading Ideas:
--Cotton trading range for the day is 18940-19160.
--Cotton prices dropped due to improved sowing, higher imports and weak international prices.
--However, the crop is higher than 2018-19 when pest attack in Maharashtra and Telangana and erratic rains in Gujarat hit yield.
--USDA hiked India's 2019-20 cotton import numbers to 18 lakh bales from last month's estimates of 16 lakh bales.
--Cotton prices in spot market dropped by 40.00 rupees and settled at 18550.00 rupees.

Courtesy: Kedia Commodities

Commodity Arrivals Rate
Mustard Oil 1 9050.00
Coconut Oil 0.1 16900.00
Arecanut 25 15000.00
Sugar 0.5 4000.00

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