Cotton on MCX settled up by 1.3% at 20210 on improved demand from bulk consumers and falling arrivals in local mandis. Bangladesh has been increasing its cotton import from India, which is supporting factor for the Indian market. Increasing demand for the cotton across major spot markets has been supporting the futures market. Increased consumption demand from millers as well as intensified buying by Cotton Corporation of India (CCI) at commercial rates is helping fibre prices. CCI has announced commercial operations of procuring around 1.5 million bales at market price and so far bought 10,000 bales. According to the International Cotton Advisory Committee (ICAC), cotton prices in the global market are likely to decline in the second half of 2016 -17 amid increase in production and steady demand. The ICAC Secretariat has forecast the season-average for Cotlook A Index in 2016-17 (starting October-September) will range between 66 and 83 cents per lb, with a midpoint of 74 cents/lb, which would be 4 cents/lb higher than last season. Global cotton production is expected to increase by 8 per cent to 22.8 million tonnes and global consumption is likely to remain steady at 24.1 million tonnes thereby putting pressure on prices. Daily arrivals in local mandis are falling and have come to 122,000 bales from 150,000 bales last week. Technically market is under short covering as market has witnessed drop in open interest by -5.25% to settled at 5561 while prices up 260 rupee, now Cotton is getting support at 20014 and below same could see a test of 19817 level, And resistance is now likely to be seen at 20324, a move above could see prices testing 20437.
# Cotton trading range for the day is 19817-20437.
# Cotton prices ended with gains on improved demand from bulk consumers and falling arrivals in local mandis.
# Bangladesh has been increasing its cotton import from India, which is supporting factor for the Indian market.
# CCI has announced commercial operations of procuring around 1.5 million bales at market price and so far bought 10,000 bales.
# Cotton prices in spot market gained by 120.00 rupees and settled at 19810.00 rupees.