MCX Cotton under short covering
Commodity Online | February 13 2020
UPDATED 12:10:58 IST

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MCX Cotton under short covering; Resistance seen at 19250

Technically Cotton market is under short covering as market has witnessed drop in open interest by 1.94% to settled at 6269 while prices up 10 rupees.

Now MCX Cotton is getting support at 19040 and below same could see a test of 18910 levels, and resistance is now likely to be seen at 19260, a move above could see prices testing 19350."

"Cotton yesterday settled up by 0.05% at 19170 rose ahead of the monthly supply and demand crop report, which investors expected to show declines in production and ending stock numbers, while a gain in the US stock markets provided further support.

The report of reopening of Chinese market from Feb 13 is also being considered as positive by ginners who are expecting that the resumption of Chinese buying will push up prices not only on international market but also in local market.

The sentiments are turning positive owing to bounce back in export figures & China’s optimistic moves to curb the negative impacts of coronavirus on financial markets. In the international market, the coronavirus outbreak “could be affecting economic growth, shipping of cotton, and shipping of all commodities as part of the Phase 1 deal would be a factor to watch out.

CCI procured around 24% of the total cotton arrived in the market till 28th January 2020.
CCI bought the major quantity of cotton (57% of total procurement) from Telangana (about 27
lakh bales out of total procurement of around 48 lakh bales) followed by Maharashtra (8 lakh
bales), Gujarat (2.57 lakh bales) and Punjab, Haryana and Rajasthan combined (4.63 lakh bales).

Trading Ideas:
--Cotton trading range for the day is 18910-19350.
--Cotton rose ahead of the monthly supply and demand crop report, which investors expected to show declines
--The report of reopening of Chinese market from Feb 13 is also being considered as positive by ginners
--CCI procured around 24% of the total cotton arrived in the market till 28th January 2020.
--The sentiments are turning positive owing to bounce back in export figures

Courtesy: Kedia Commodities

Commodity Arrivals Rate
Mustard Oil NR 10150.00
Coconut Oil 2 18200.00
Arecanut 0.75 20800.00
Sugar NR 3500.00

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