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MCX Cotton under short covering; Resistance seen 22460
Commodity Online | November 09 2018
UPDATED 10:10:22 IST

MCX Silver may trade in a range between 36257-37017

Gold market under fresh selling; Support seen at 30715

MCX Mentha Oil under short covering

MCX Cotton under fresh buying; Resistance seen at 22380

MCX Cardamom under fresh buying; Support seen 1493.5

Technically Cotton market is under short covering as market has witnessed drop in open interest by 0.3% to settled at 3658 while prices up 110 rupees.

Now MCX Cotton is getting support at 22350 and below same could see a test of 22280 level, And resistance is now likely to be seen at 22460, a move above could see prices testing 22500.

Cotton gained on short covering after prices dropped on improving physical arrivals in Gujarat and Maharashtra. FAS Mumbai estimates MY 2018/19 production at 28.5 million 480-lb bales(36.5 million 170-kilogram bales/6.2 MMT), which is 200,000 480-lb bales lower than the official USDA estimate.

Dry weather in Gujarat state’s Saurashtra and Kutch regions and Maharashtra state’s central and eastern regions will likely affect yields. However, Indian Cotton Federation (ICF) said that the availability of cotton in the country would be comfortable in 2018/19 season.

Indian Cotton Federation (ICF) said that the availability of cotton in the country would be comfortable in 2018/19 season. This season there are reports of delay in peak arrivals from Gujarat and Rajasthan due to dry weather and below-normal rains in most producing states, yields are expected to get affected.

According to CAI, cotton production in 2018/19 is likely to fall 4.7% from the previous season to 34.8 million bales due to scanty rainfall and an attack of pink bollworms. As per CAI, India’s forward export contracts of cotton have more than doubled from about 7 lakh bales in September 2017, driven by increased demand from China.

As per government’s sowing report, cotton has been sown in 122.38 lakh ha, lower than 124.29 lakh ha sown last year till date but higher than normal kharif area of 119.75 lakh ha on date. Scanty rainfall in Gujarat & an attack of pink bollworms.

Trading Ideas:
--Cotton trading range for the day is 22280-22500.
--Cotton dropped on improving physical arrivals in Gujarat and Maharashtra.
--However, Indian Cotton Federation (ICF) said that the availability of cotton in the country would be comfortable in 2018/19 season.
--As per government’s sowing report, cotton has been sown in 122.38 lakh ha, lower than 124.29 lakh ha sown last year till date.
--Cotton prices in spot market gained by 90.00 rupees and settled at 22520.00 rupees.

Courtesy: Kedia Commodities

Commodity Arrivals Rate
Mustard Oil 29.85 9045.00
Arecanut 0.1 12000.00
Rubber 0.02 11600.00
Gur 0.7 2880.00

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