The fear of escalating trade war will continue to keep the upside capped of cotton futures on the domestic bourse.
Sluggish business activities are being observed in the spot markets as both buyers and sellers are cautious trading.
Hence, the May contract is expected to witness a correction towards 20940 levels. On the international market, ICE Cotton futures
were down 45 to 72 points in most contracts on Wednesday. USDA will release their weekly update to the Export Sales report on
Thursday, with most eyes on Chinese actions in the reporting week that ended on May 16. The Cotlook A index for May 21 was up
220 points from the previous day to 78.8 cents/lb. The weekly Average World Price (AWP) is now 59.59 cents/lb, down 5.06 cents
from last week. Guar seed futures (June) is likely to witness selling pressure & test 4380, while guar gum futures (June) is
expected to witness correction towards 8745-8700, if breaks 8780 levels. The sentiments have turned bearish after the estimates
by the Rajasthan State Agriculture department show that guar production to increase by 45.5% in the coming 2019-20 (Jul-Jun)
season from an output of 1.03 mln tn estimated in the current year due to sharp rise in yields. Yield in the coming season is seen at
500 kg per ha, compared to 334 kg this year. Maize futures on the national bourse is making a new life time high every week &
going ahead this bullish trend is expected to stay intact. The June contract would probably take support near 1930-1920 & remain
stable supported by robust purchases by feed makers while adding that uncertainty over imports of the grain.
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