MCX Cotton under short covering; Resistance seen at 19650
Commodity Online | October 10 2019
UPDATED 11:30:14 IST

MCX Mentha Oil likely to move in a range of 1279.3-1313.3

MCX Aluminium may trade between 131.8-133.8 levels

NCDEX Chana under short covering; Resistance seen at 4477

MCX Nickel likely to move in a range of 950.7-1013.7

MCX Cotton under fresh selling; Support seen at 18990

Technically Cotton market is under short covering as market has witnessed drop in open interest by 1.34% to settled at 1248 while prices up 60 rupees.

Now MCX Cotton is getting support at 19400 and below same could see a test of 19260 levels, and resistance is now likely to be seen at 19650, a move above could see prices testing 19760.

Cotton on MCX settled up by 0.31% at 19550 on short covering after prices dropped tracking weakness in overseas prices as tensions between Washington and Beijing heightened ahead of this week's trade talks.

With harvest season approaching and cotton growers hoping for ‘handsome returns’ this kharif season, there is unpleasant news coming from the other end of the world.The International Cotton Advisory Committee (ICAC), in its cotton summary for October 2019, noted that global production projected at about 26.8 million tonnes is expected to slightly outpace global consumption, projected at 26.5 million tonnes, for the 2019-20 year, which began from August.

This news comes at a time, when the cotton trade in India is looking at uncertain times with crop damage fears in the key growing regions of Madhya Pradesh and Gujarat, where heavy rainwater has flushed the cotton fields.A US Department of Agriculture (USDA) September 2019 report on the cotton market revealed that the US’ share in China’s total cotton imports fell to 18 per cent in 2018-19, down from 45 per cent in 2017-18. Cotton Association of India (CAI) data showed that India’s cotton exports were 36 per cent lower, at 44 lakh bales, till September 30, while its imports almost doubled to 29 lakh bales.

Trading Ideas:
--Cotton trading range for the day is 19260-19760.
--Cotton gained on short covering after prices dropped  tracking weakness in overseas prices as tensions between US and Beijing heightened ahead of this week's trade talks.
--ICAC noted that global production projected at about 26.8 million tonnes — is expected to slightly outpace global consumption, projected at 26.5 million tonnes.
--The US’ share in China’s total cotton imports fell to 18 per cent in 2018-19, down from 45 per cent in 2017-18, USDA report showed.
--Cotton prices in spot market dropped by 10.00 rupees and settled at 19640.00 rupees.

Courtesy: Kedia Commodities

Commodity Arrivals Rate
Mustard Oil NR 9770.00
Coconut Oil 20 17650.00
Arecanut 43 1600.00
Sugar NR 3800.00

More