Technically MCX Cotton is under fresh selling as market has witnessed gain in open interest by 3.35% to settled at 9636 while prices down -60 rupees.
Now Cotton is getting support at 19924 and below same could see a test of 19797 level, And resistance is now likely to be seen at 20174, a move above could see prices testing 20297.
Cotton on MCX settled down by -0.3% at 20050 on profit booking after prices seen supported amid expectations of robust demand and buying at lower level. India's export demand is likely to rise on poor quality of US fibre.
Moreover, US cotton is expensive owing to higher freight charges. Countries like Bangladesh, Vietnamm, China will import significant amount of domestic fibre.
India's cotton arrivals during current year 2017-18 (September-October) recorded a growth of 18% and reached to 16.5 million bales due to increased output, said sources at Cotton Corporation of India (CCI).
This represents nearly 44% of the total estimated crop of 37.7 million bales for the current year. Last year, cotton arrivals stood at 14 million bales in the corresponding period.
Despite reports of losses due to Pink Bollworm, in Telangana cotton arrivals spurted to 2.75 million bales from 1.8 million bales a year ago and in Maharashtra to 4.26 million bales from 3.7 million bales a year ago, said sources.
Reports of losses did not impact arrivals as the pest hit crop at later stage, said sources. Cotton arrivals in Gujarat were up 10% at 3.3 million bales while in Andhra Pradesh they were unchanged at 800,000 bales.
Cotton inflow jumps 50% to 750,000 bales in Karnataka and was slightly better at 1.2 million bales in Madhya Pradesh, data showed. In north India, cotton arrivals were up at 1.42 million bales from 1 million bales in Haryana and at 1.25 million bales up from 1.05 million bales in Rajasthan.
Trading Ideas:
--Cotton trading range for the day is 19797-20297.
--Cotton prices dropped on profit booking after prices seen supported amid expectations of robust demand and buying at lower level.
--India's cotton arrivals during current year 2017-18 recorded a growth of 18% and reached to 16.5 million bales due to increased output
--Despite reports of losses due to Pink Bollworm, in Telangana cotton arrivals spurted to 2.75 million bales from 1.8 million bales a year ago.
--Cotton prices in spot market dropped by 390.00 rupees and settled at 19500.00 rupees.