Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel https://t.me/InvestmentGuruIndia
Download Telegram App before Joining the Channel
Cotton on MCX settled down by -0.37% at 19050 as the farmers are bringing dried cotton to the procurements centers as recommended by CCI. Their produce attracting the minimum support price (MSP) of Rs 5,500 per quintal. The trend of bringing dried up produce to the yards is catching up rapidly. The Cotton Corporation of India (CCI) bought nearly 2 lakh bales until November 25 even as late arrivals and high moisture content restricted its buying program, said sources. Arrivals began picking up and prices are ruling around government fixed minimum support price (MSP) in most producing centres. The state owned agency purchased highest quantity of 1.20 lakh bales in Telangana followed by 22,000 bales in the markets of Punjab and 19,000 bales in Rajasthan, sources said. Total arrivals stood around 29.28 lakh bales so far. And a total of 8.48 lakh bales have arrived, higher against 6.15 lakh bales last week. Of this, 4.49 lakh bales were from Central India, followed by 2.13 lakh bales from South India in this week. The arrivals from North India have started so the arrivals increased to around 1.85 lakh bales this week. Last year, the government agency purchased total 10.70 lakh bales of cotton and out of this 1.70 lakh bales sold in the market so far. Technically market is under fresh selling as market has witnessed gain in open interest by 3.26% to settled at 2120 while prices down -70 rupees, now Cotton is getting support at 18990 and below same could see a test of 18940 levels, and resistance is now likely to be seen at 19120, a move above could see prices testing 19200.
Trading Idea for the day
* Cotton trading range for the day is 18940-19200.
* Cotton prices settled flat as the farmers are bringing dried cotton to the procurements centers as recommended by CCI.
* CCI bought nearly 2 lakh bales even as late arrivals and high moisture content restricted its buying program.
* The arrivals from North India have started so the arrivals increased to around 1.85 lakh bales this week.
Cocudakl on NCDEX settled down by -0.56% at 1950 on late profit booking after prices gained amid fear the delay in the cotton crop and the cotton stock being low. There would be deduction of 1% in support price for every 1% increase in the moisture content. The crop with a moisture content of 12% will be procured at the support price of Rs.5232/q after the deductions. Prices also seen supported due to supply shortages caused by a smaller crop in the previous year. Consumption has also increased due to the fall in the prices of the cake and due to the cheapness in Rajasthan, Punjab, Haryana. Cotton output is projected at 322.87 lakh bales sharply up from 287.08 lakh bales, the country produced last year due to increased acreage. Also last year, cotton crop was hit due to erratic rains in Gujarat and pest attack in Maharashtra and Telangana. The cotton area has been increased this year by 6.4 lakh ha and stood at 127.09 lakh ha till now higher than 120.64 lakh ha last year. The sowing is lagging behind in Gujarat by 2% this week and stood same at 26.67 lakh ha followed by Madhya Pradesh is behind by 13% covering only 6.09 lakh ha area. In Akola spot market, Cocudakl dropped by -8.7 Rupees to end at 1987.8 Rupees per 100 kgs.Technically market is under short covering as market has witnessed drop in open interest by -0.11% to settled at 35420 while prices up 17 rupees, now Chana is getting support at 4417 and below same could see a test of 4386 levels, and resistance is now likely to be seen at 4477, a move above could see prices testing 4506.
Trading Idea for the day
* Cocudakl trading range for the day is 1894-2020.
* Cocudakl gained amid fear the delay in the cotton crop and the cotton stock being low.
* Prices also seen supported due to supply shortages caused by a smaller crop in the previous year.
* There would be deduction of 1% in support price for every 1% increase in the moisture content.
To Read Complete Report & Disclaimer Click Here
Views express by all participants are for information & acadamic purpose only. Kindly read disclaimer before refering below views. Click Here For Disclaimer