Long Liquidation Seen In MCX Cotton

Published 17-05-2017, 10:41 am
CT
-

Technically MCX Cotton is under long liquidation as market has witnessed drop in open interest by -2.1% to settled at 4186 while prices down -80 rupees.

Now Cotton is getting support at 21066 and below same could see a test of 21003 level, And resistance is now likely to be seen at 21226, a move above could see prices testing 21323.

Cotton on MCX settled down by -0.38% at 21130 amid higher supplies this season through imports and good stocks available with the farmers.

According to trade sources, India’s cotton imports have touched an all-time high of 30 lakh bales this season. USDA forecasts India cotton production for 2017/18 at 6.01 mt, up nearly 6% while area is forecast at 11.5 mhac, up 10% from last year.

The domestic cotton arrivals in April are higher by 49% on year at 2.64 lakh tonnes (lt) compared to 1.77 lt last year, as per data.

The USDA reported US cotton planting 33% complete, lagging the average of 37% and last year’s 38%. Weekly export data also supported cotton prices which showed net upland sales last week totaled 160,600 running bales, up 5% from the week before.

However, favorable planting conditions across major producing areas across the world may pressurize prices.

Sowing of cotton has begun on a strong note in the key growing regions of North India such as Punjab and Haryana, and Southern Karnataka, for the 2017-18 season.

Buoyed by the high prevailing prices, farmers are seen bringing in a larger area under the fibre crop and the seed industry expects acreages this year to increase by up to a fifth over the previous year.

Trading Ideas:

--Cotton trading range for the day is 21003-21323.

--Cotton prices dropped amid higher supplies this season through imports and good stocks available with the farmers.

--According to trade sources, India’s cotton imports have touched an all-time high of 30 lakh bales this season.

--Sowing of cotton has begun on a strong note in the key growing regions of North India for the 2017-18 season.

--Cotton prices in spot market gained by 10.00 rupees and settled at 20600.00 rupees

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.