Cotton trading range for the day is 18973-19213

Cotton on MCX settled up by 0.16% at 19060 on expectation of improved demand for new season crop from textile mills. Though, some gains were capped on rising arrivals from major producing belts. Rains affected BT cotton crop grown in about 32,000 hectares in Tiruchi and Perambalur districts. It is only the north-east monsoon which brings an assured irrigation facility in the rain-fed regions like M.R. Palayam and surrounding areas in Tiruchi district and Veppanthattai and nearby villages in Perambalur district.

It raised their net long position in cotton by 744 lots to 101,392 lots which is the highest level since the data became publicly available in 2006. Technically market is under short covering as market has witnessed drop in open interest by -0.48% to settled at 4173 while prices up 30 rupee, now Cotton is getting support at 19016 and below same could see a test of 18973 level, And resistance is now likely to be seen at 19136, a move above could see prices testing 19213.

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