CommodityOnline | Sep 13, 2017 18:47
Technically MCX Cotton is under fresh selling as market has witnessed gain in open interest by 8.29% to settled at 2794 while prices down -200 rupees.
Now Cotton is getting support at 18524 and below same could see a test of 18417 level, And resistance is now likely to be seen at 18764, a move above could see prices testing 18897.
Cotton on MCX settled down by -1.06% at 18630 on hope of higher output amid weak demand. India's cotton output is expected to rise to 35-36 million bales for second consecutive year in 2017-18, said different industry sources.
Moreover, arrivals in northern region which is expected to increase further and may lead to easiness in supply situation kept prices under pressure. Output of most kharif crops, barring cotton, is seen declining in Telangana due to a sharp fall in acreage following a dry spell during Jul-Aug, a senior official with the state farm department said.
In the Jun-Sep monsoon season so far, Telangana has received 577.5 mm of rainfall, 11% below normal, according to India Meteorological Department. Cotton output in the state is seen rising 42% on year to 4.15 mln bales (1 bale = 170 kg), according to the first advance estimate shared by an official with the state farm department.
Output of cotton is seen higher due to a sharp rise in acreage. High prices of the fibre last year and a rise in minimum support price prompted the state government to encourage farmers to grow cotton.
Area under cotton rose to 1.8 mln ha this kharif season from 1.4 mln ha last year. Meanwhile, demand for yarn exports has also tumbled as Indian cotton yarn prices turned uncompetitive due to higher tax while strengthening of Indian currency also hampered overall demand.
--Cotton trading range for the day is 18417-18897.
--Cotton prices ended with losses on hope of higher output amid weak demand.
--India's cotton output is expected to rise to 35-36 million bales for second consecutive year in 2017-18.
--Total cotton yarn export from India has dropped by 9.79% during Apr-Jul 2017 due to weaker demand from China and Bangladesh, data showed.
-Cotton p-rices in spot market dropped by 150.00 rupees and settled at 19990.00 rupees.
Written By: CommodityOnline
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