Cotton trading range for the day is 19190-19410

by - 10:47 am

Cotton on MCX settled up 0.68% at 19330 due to limited arrivals from major growing regions. Though, some gains were capped on expectation of weak export demand by ICRA. World cotton stocks are forecast to decline 8 percent (7.7 million bales) in 2016/17 to 89.1 million bales, the lowest in 5 years. Despite the considerable decrease from 2014/15’s peak of 111.7 million bales, global ending stocks remain at relatively high levels as excess supplies that have been stored in China’s national reserve are reduced. In 2016/17, China’s total ending stocks are projected at 47.8 million bales, compared with 66.9 million bales just 2 years ago, or an estimated 54 % of global stocks at season’s end. 

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China has announced that reserve sales would begin again in March 2017 in an effort to reduce the excess supplies further. Department of Agriculture (USDA) has estimated 2016/17 global cotton production at 104.2 million bales, an expansion of 8 per cent over the previous season. Improved weather conditions, also led to the growth in output of the global cotton crop. 

                                                    Technically market is under fresh buying as market has witnessed gain in open interest by 0.59% to settled at 6629 while prices up 130 rupee, now Cotton is getting support at 19260 and below same could see a test of 19190 level, And resistance is now likely to be seen at 19370, a move above could see prices testing 19410.

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