Cotton market is under long liquidation as market has witnessed drop in open interest by 6.89% to settled at 311 while prices down 90 rupees.
Now MCX Cotton is getting support at 21320 and below same could see a test of 21190 level, And resistance is now likely to be seen at 21560, a move above could see prices testing 21670.
Cotton on MCX settled down by 0.42% at 21440 due to weak demand in the physical market. There is intermittent rise in cotton arrivals across major mandis are witness. Cotton Corporation of India (CCI) may enter into the markets of Maharashtra to buy cotton next week as prices came closer to government fixed minimum support price (MSP), said a senior official.
The CCI already started buying cotton in the markets of Madhya Pradesh and Telangana but in small quantities. With the increase in new crop supplies after the Diwali festival prices of cotton have started declining and are near to MSP, the official said. Government buying is set to pickup in Telangana this week as prices are ruling near to MSP level.
The MSP of medium staple variety was raised to Rs 5,150 per quintal from Rs 4,020 per quintal and long staple variety to Rs 5,450 per quintal from Rs 4,320 per quintal. Meanwhile, 2018-19 cotton arrivals slipped to 3.9 million bales of 170 kg until November 23 from 5.5 million bales a year ago, the official added.
Barring Rajasthan all the states reported lower arrivals so far. Cotton arrivals stood at 750,000 bales in Gujarat down from 1.05 million bales a year ago while the inflow improved to 660,000 bales in Rajasthan from 500,000 bales in the previous year.
–Cotton trading range for the day is 21190-21670.
–Cotton prices dropped due to weak demand in the physical market
–Cotton arrivals in Maharashtra fell to 600,000 bales from 1.2 million bales and in Telangana to 400,000 bales from 800,000 bales last year.
–Cotton arrivals stood at 750,000 bales in Gujarat down from 1.05 million bales a year ago.
–Cotton prices in spot market dropped by 10.00 rupees and settled at 21400.00 rupees.