Technically Cotton market is under short covering as market has witnessed drop in open interest by 12.62% to settled at 1655 while prices up 140 rupees" />
 
MCX Cotton under short covering; Support seen at 19080
Commodity Online | November 14 2019
UPDATED 12:00:28 IST

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Technically Cotton market is under short covering as market has witnessed drop in open interest by 12.62% to settled at 1655 while prices up 140 rupees.

Now MCX Cotton is getting support at 19080 and below same could see a test of 18970 levels, and resistance is now likely to be seen at 19270, a move above could see prices testing 19350.

Cotton on MCX settled up by 0.73% at 19200  as support seen after 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 18970-19350.
--Cotton prices gained  as support seen after USDA lowered India's 2019-20 cotton crop to 300 bales
--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 110.00 rupees and settled at 18680.00 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

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