Cotton on MCX settled down by -1.46% at 20310

Cotton on MCX settled down by -1.46% at 20310 amid increase in arrivals and stagnant demand. Domestic market arrivals reached 200,000 bales per day for the first time in current cotton season. The arrivals include 55,000 Maharashtra, 50,000 Gujarat and over 40,000 from Andhra Pradesh and Telangana.

Meanwhile, arrivals in the remaining days of January and February would determine the physical market trend in forthcoming days. Market arrivals of cotton in the first three months of the 2017-18 marketing season starting October are higher by around 43% over corresponding last year. India cotton traders cancel export deals due to higher local prices and country could export only 5 million bales, each of 170kg, in the 2017/18 marketing year started on 1 October—nearly a quarter below an initial estimate.

The USDA on Friday reported exports of 289,900 running bales for the week ended Jan. 11, a marketing-year high, which were up 3% from the previous week and 27% from the prior 4-week average. USDA Cotton Ginnings report showed 17.43 million RB had been ginned as of January 15 which was a 1.277 million RB jump since Jan 1, and is 17% larger than this time last year.

The Cotton Corporation of India (CCI) purchased nearly 485,000 bales cotton at minimum support price (MSP) fixed by government as prices are ruling firm, said sources. Technically market is under long liquidation as market has witnessed drop in open interest by -36.15% to settled at 2550 while prices down -300 rupees, now Cotton is getting support at 20174 and below same could see a test of 20037 level, And resistance is now likely to be seen at 20534, a move above could see prices testing 20757.

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