Cotton on MCX settled up by 0.7% at 20160 tracking firmness in spot demand and lower arrivals in local mandis. Total of 12.45 million bales have arrived until Jan 17 during the 2016-17 marketing season, this is 7.1% below the arrivals in the same period last year, the data published by Cotton Corporation of India (CCI) said. Meanwhile, The National Tariff Commission (NTC) of Pakistan has imposed variable counter regulatory duty on import of fine yarn from India, which was previously subsidised. In the 2016-17 cotton marketing year, US cotton exports are likely to increase by 35 per cent. US market share of world cotton trade is forecast to increase as exports have increased 66 per cent year on year in the first five months of the current marketing year. The higher cotton export growth was mainly due to higher exports to China, Indonesia, Vietnam and other small countries. In the 2016-17 cotton marketing year, US cotton exports are likely to increase by 35 per cent. US market share of world cotton trade is forecast to increase as exports have increased 66 per cent year on year in the first five months of the current marketing year. The higher cotton export growth was mainly due to higher exports to China, Indonesia, Vietnam and other small countries. Technically market is under short covering as market has witnessed drop in open interest by -7.04% to settled at 3655 while prices up 140 rupee, now Cotton is getting support at 20070 and below same could see a test of 19980 level, And resistance is now likely to be seen at 20250, a move above could see prices testing 20340.

Trading Ideas:

Cotton trading range for the day is 19980-20340.

Cotton prices ended with gains tracking firmness in spot demand and lower arrivals in local mandis.

Total of 12.45 million bales have arrived until Jan 17 during the 2016-17 marketing season.

In the 2016-17 cotton marketing year, US cotton exports are likely to increase by 35 per cent.

Cotton prices in spot market gained by 270.00 rupees and settled at 20140.00 rupees.