Cotton on MCX settled down -0.47% at 21170 on profit booking after prices seen supported following robust United States weekly exports data. Data published by USDA showed weekly export sales jumped to 481,400 RB for the week ended on Feb 23, which were up 31% from the previous week and 72% from the prior 4-week average. US is likely to export 12.7 million bales in year 2016-17 higher by 39% from previous year and expected to export about 13.2 million bales of 480 lb each in year 2017-18, higher by 3.9% year on year as per USDA estimates. Meanwhile, in domestic market the North India Textile Mills Association (NITMA) urged commission agents across North India to immediately return the purchases cotton procured from Gujarat if it contained mixture of lower grade variety of cotton. The International Cotton Advisory Committee (ICAC) has projected that India's cotton exports will grow 3 per cent to 990,000 tonnes in the current year, with production likely to rise by 2 per cent to 5.9 million tonnes. World cotton trade is estimated to expand by 3 per cent to
8 million tonnes in 2017-18, with China’s import volume set to grow by 11 per cent to 1.1 million tonnes for the year. ICAC cites the growth in China's imports to its surging mill use, which continues to outpace its production. Technically market is under long liquidation as market has witnessed drop in open interest by -0.16% to settled at 8861 while prices down -100 rupees, now Cotton is getting support at 21036.6 and below same could see a test of 20903.3 level, And resistance is now likely to be seen at 21286.6, a move above could see prices testing 21403.3.

Trading Ideas:

# Cotton trading range for the day is 20903-21403.

# Cotton prices dropped on profit booking after prices seen supported following robust United States weekly exports data.

# Data published by USDA showed weekly export sales jumped to 481,400 RB for the week ended on Feb 23.

# ICAC has projected that India's cotton exports will grow 3 per cent to 990,000 tonnes in the current year, with production likely to rise by 2 percent.

# Cotton prices in spot market dropped by 90.00 rupees and settled at 20690.00 rupees.