Cotton on MCX settled down -0.75% at 21110 on profit booking after prices gained as the arrivals in the domestic market slow down in April. India's cotton imports during the current crop year (Oct-Sep) may jump 36% on strong rupee and poor quality of domestic cotton. Import of the fibre is expected to rise to 3 million bales in 2016-17 compared to 2.2 million bales cotton imported during 2015-16. Comparatively poor quality of domestic cotton is also responsible for increased imports despite higher output. The Cotton Advisory Board
(CAB) projected India's 2016-17 cotton output at 35.1 million bales up from 33.8 million bales a year ago. Total cotton arrivals across the country till Apr 20 stood at 28.79 million bales of 170 kg, according to Cotton Corporation of India (CCI). This is nearly 82% of the projected output for the current year. Cotton Advisory Board (CAB) estimated 2016-17 cotton crop at 35.1 million bales up from 33.8 million bales a year ago. According to data of CCI cotton arrivals in Maharashtra stood at 7.97 million bales followed by Gujarat at 7 million bales and Telangana at 4.18 bales, data showed. Madhya Pradesh reported arrivals of 1.91 million bales, Tamil Nadu 1.66 million bales, Haryana 1.59 million bales, Rajasthan 1.51 million bales, Karnataka at 1.36 million bales Punjab at 873,900 bales. Technically market is under long liquidation as market has witnessed drop in open interest by -18.46% to settled at 2248 while prices down -160 rupees, now Cotton is getting support at 20963.4 and below same could see a test of 20816.7 level, And resistance is now likely to be seen at 21323.4, a move above could see prices testing 21536.7.

Trading Ideas:

Cotton trading range for the day is 20817-21537.

Cotton dropped on profit booking after prices gained as the arrivals in the domestic market slow down in April.

India's cotton imports during the current crop year (Oct-Sep) may jump 36% on strong rupee and poor quality of domestic cotton.

Cotton Advisory Board (CAB) estimated 2016-17 cotton crop at 35.1 million bales up from 33.8 million bales a year ago.

Cotton prices in spot market gained by 90.00 rupees and settled at 20810.00 rupees.