Commodity Trading Tips for Cotton by Kedia Commodity

Cotton on MCX settled up by 0.05% at 20610 due to lower level buying by the market participants. Market is currently quiet as supplies are tight and the demand is steady which has led to fluctuation in the prices of cotton. The cotton arrivals in the physical markets have seen improving during last week compared to previous weeks but still the normal arrivals have not seen Gujarat and Maharashtra this season. As on Feb 06, 2017 about 167 lakh bales of cotton have arrived in the domestic market. Maharashtra is leading the arrivals figures at 45.4 lakh bales followed by Gujarat at 38.6 lakh bales. In Dec 2016, India exported about 60,850 tonnes cotton to China, up 89% yoy. China imported highest cotton from India than from any other country in the month of December 2016. ICE cotton futures edged up on Wednesday to snap a three-day losing streak on cautious buying ahead of the monthly supply and demand report from the U. S. government. The U. S. Department of Agriculture's World Agricultural Supply and Demand Estimates (WASDE) report is due on Thursday. The U. S. export sales data from the U. S. Department of Agriculture is also due on Thursday. India's cotton arrivals falls 5% to 12.83 million bales until Jan 19 on late commencement of supplies though output for the 2016-17 is expected to higher. Technically market is under fresh buying as market has witnessed gain in open interest by 0.31% to settled at 7462 while prices up 10 rupees, now Cotton is getting support at 20580 and below same could see a test of 20550 level, And resistance is now likely to be seen at 20660, a move above could see prices testing 20710.

Trading Ideas:

# Cotton trading range for the day is 20550-20710.

# Cotton prices seen supported due to lower level buying by the market participants

# As on Feb 06, 2017 about 167 lakh bales of cotton have arrived in the domestic market.

# Market is currently quiet as supplies are tight and the demand is steady which has led to fluctuation in the prices of cotton.

# Cotton prices in spot market gained by 130.00 rupees and settled at 20360.00 rupees.