IGI Logo

Cottoncandy

Cottoncandy prices slipped by -0.49% to Rs.52,610, driven by an uptick in supply and sluggish mill buying as mills remain comfortably stocked, reducing immediate demand. The Cotton Association of India (CAI) further trimmed its 2024-25 crop estimate by 2% to 295.30 lakh bales, citing a lower-than-expected harvest in central India. This marks a significant drop from last season’s 327.45 lakh bales, driven by a 10% decline in cultivation area. Regionally, Gujarat and Maharashtra are set to see declines of 4 lakh and 3 lakh bales respectively, while Odisha may see a minor rise of 0.55 lakh bales. On the import front, CAI expects a sharp rise, forecasting imports to double to 32 lakh bales in 2024-25, up from 15.2 lakh bales last season, with 22 lakh bales already imported by February. Domestic consumption remains steady at 315 lakh bales, with 142 lakh bales consumed by February-end. However, exports are projected to slump by 40% to 17 lakh bales. Closing stocks are forecasted to shrink to 23.49 lakh bales - down from 30.19 lakh bales last year. Globally, Brazil’s cotton output is expected to rise by 1.6% to 3.7616 million tons, supported by a 4.8% expansion in planted area. Meanwhile, U.S. cotton stocks-to-use ratio rose to 39%, with average upland farm prices projected lower at 63.5 cents per pound. Technically, the market is under long liquidation, evidenced by a -9.13% drop in open interest to 219. Support is at Rs.52,500, with further downside possible to Rs.52,400. Resistance stands at Rs.52,700, with a potential breakout to Rs.52,800.

BUY COTTONCANDY MAR @ 52600 SL 52300 TGT 52900-53200. MCX

COCUDAKL

BUY COCUDAKL APR @ 2740 SL 2710 TGT 2770-2800. NCDEX

KAPAS

BUY KAPAS APR @ 1450 SL 1440 TGT 1460-1470. NCDEX