Short Covering seen in MCX Cotton
Commodity Online | July 17 2019
UPDATED 12:00:59 IST

NCDEX Chana under fresh selling; Support seen at 4170

MCX Cotton likely to move in a range of 21040-21500

NCDEX Jeera under short covering; Support seen at 16770

NCDEX Turmeric under long liquidation; Resistance seen at 6912

NCDEX Mustard Seed likely to move in a range of 3895-3973

Technically Cotton market is under short covering as market has witnessed drop in open interest by 4.16% to settled at 6772 while prices up 260 rupees.

Now MCX Cotton is getting support at 21400 and below same could see a test of 21220 levels, and resistance is now likely to be seen at 21700, a move above could see prices testing 21820.

Cotton on MCX settled up by 1.22% at 21590 tracking rise in overseas prices on concerns of crop damage in major cotton-growing regions due to Hurricane Barry. However, World Agriculture Supply and Demand Estimates (WASDE) report projected higher global ending stocks for 2019/20 crop year amid demand woes.

India’s exports are likely to drop till the end of cotton season up to September 30, 2019, to 40-50 lakh bales. Imports were likely to be on the lower side as well, trade bodies said. Shipments of nearly 22 lakh bales had arrived and another 10 lakh bales were expected till the end of the season.

The Southern India Mills’ Association (Sima ) has earlier estimated cotton imports at 22 lakh bales. The Association has estimated that actual imports can be between 28 lakh bales and 30 lakh bales when the season ends.

The Cotton Advisory Board (CAB) has estimated it to be 22 lakh bales. According to the data released by Cotton Association of India (CAI), the total cotton supply till end of the cotton season up to September 30, 2019, is estimated at 376 lakh bales of 170 kg each consisting of the opening stock of 33 lakh bales at the beginning of the season.

CAI estimated imports at 31 lakh bales, which are higher by 16 lakh bales against the previous year’s import estimated at 15 lakh bales.

Trading Ideas:
--Cotton trading range for the day is 21220-21820.
--Cotton prices gains tracking rise in overseas prices on concerns of crop damage in major cotton-growing regions due to Hurricane Barry.
--However, WASDE report projected higher global ending stocks for 2019/20 crop year amid demand woes.
--India’s exports are likely to drop till the end of cotton season up to September 30, 2019, to 40-50 lakh bales.
--Cotton prices in spot market dropped by 30.00 rupees and settled at 21230.00 rupees.

Courtesy: Kedia Commodities

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