Cotton futures (Apr) will possibly remain trapped in a sideways range of 22000-22300.
The reason being is
that the cotton in the international market is in a consolidation zone 77-79 cents per pound. The counter is facing the heat of the
tussle between the higher dollar index pressuring the ICE cotton futures & on the contrary a weaker rupee giving support to the
domestic prices. The overall bias will be negative owing to reports that China will sell 1 million tons of cotton from its state reserves
as part of a scheme to replace old stocks, marking the biggest reserve auction in at least 13 months. About 10,000 tons of cotton
will be auctioned on every workday between May 5 and Sept. 30, the administration said. On the demand side, the marketparticipants would also judge the U.S export sales numbers & take further cues for the direction of prices. Chana futures (May) is
expected to crash further towards 4300-4270 levels on estimates of higher pulses output in the upcoming Kharif season. For
pulses in 2019-20, the government has set Kharif output target of 10.1 MT, higher than 9.01 MT production pegged in 2018-19.
According to official reports, Centre has 964,845 tons pulses seed for sowing in 2019-20 (Jul-Jun) kharif season, higher than the
requirement of 821,242 tons. Guar seed futures (May) is expected to consolidate in the range of 4290-4340, while guar gum
futures (May) may trade with a negative bias & descend towards 8550 levels. The correction in oil prices in the international market
& a declining guar gum-guar seed ratio is giving a signal that demand for the commodities will be sluggish.
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