Cotton on MCX settled down by -0.48% at 20720 on higher arrivals and sufficient stock levels in the country. India's 2016-17 cotton imports are set to jump more than a third from a year ago to a record 30 lakh bales on stronger rupees. On export front, country has so far contracted about 45 lakh bales in the current crop year, and total exports in the season could be around 5 million bales, down 30% from a year ago. Total cotton arrivals across the country till Apr 7 stood at 27.87 million bales recording a rise of 5% over last year's level of 26.47 million bales, according to the Cotton Corporation of India (CCI) data. 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 jumped to 7.61 million bales from 5.82 million bales a year ago. As per USDA forecast, India’s 2017/18 cotton production forecast increase by 3.7% to 36.5 million 170 kg bales/6.2 mt. Area will increase to 11 million hectares from 10.5 mh in 2016/17. USDA estimated U.S. stocks ending 2016/17 at 3.7 million bales, as against an outlook of 4.5 million bales in its report last month and also raised exports projection by 800,000 bales to 14 million bales. Technically market is under long liquidation as market has witnessed drop in open interest by -4.9% to settled at 6077 while prices down -100 rupees, now Cotton is getting support at 20646 and below same could see a test of 20573 level, And resistance is now likely to be seen at 20806, a move above could see prices testing 20893.
Cotton trading range for the day is 20573-20893.
Cotton prices dropped on higher arrivals and sufficient stock levels in the country.
Total cotton arrivals across the country stood at 27.87 million bales recording a rise of 5% over last year's level of 26.47 million bales.
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 dropped by 50.00 rupees and settled at 20940.00 rupees.