Cotton futures (Feb) is likely to plunge further towards 20100-20000 levels.
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Cottonprices moved lower in Punjab, Haryana and upper Rajasthan, tracking weakness in
US natural fiber. Sharp decline in domestic futures along with higher output
estimate in China also weighed on spot prices. Worries about a looming March 1
deadline for a US-China trade agreement also dragged prices lower. Meanwhile,
negotiators from the United States and China, the world's top soybean buyer, are
trying to hammer out a trade deal before a March 1 deadline, when US tariffs on
USD 200 billion worth of Chinese imports are scheduled to increase to 25 percent
from 10 percent. Guar seed futures (Mar) may face resistance near 4300 levels,
while guar gum futures (Mar) is expected to remain below 8520 levels. The weekon-week declining ratio of guar seed to guar gum is depicting the fact that demand
for these commodities are decreasing. Chana futures (Mar) is expected to take
support near 4175 levels. The counter is trading higher at major markets in the
country following firm cues from fresh physical trade activity at lower rates. Flour
millers are actively purchasing chana due to cheaper prices and easy availability
compared to White Pea. Moreover, the Cold waves and untimely rains may further
damage the standing crop. Mentha oil (Feb) is likely to witness further rally & test
1650-1665 levels. Overall, sentiments are bullish as delayed sowing in the state is
likely to affect the crop yield. As per reports, farmers are now worried as untimely
rains and inclement weather conditions have delayed the sowing in key producing
belts. The production is likely to be badly affected if weather conditions don't
improve in the next few days.
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