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Cottoncandy

BUY COTTONCANDY MAR @ 53600 SL 53300 TGT 53900-54200. MCX

Cottoncandy prices declined by 0.87% to settle at Rs.53,730 due to increased supply and limited mill buying. Mills are currently well-stocked and do not have urgent purchasing needs. Additionally, Brazil's cotton production for 2024-25 is expected to increase by 1.6% to 3.7616 million tons, with the planting area expanding by 4.8%, further strengthening supply. Meanwhile, the Cotton Corporation of India (CCI) is expected to procure over 100 lakh bales at the Minimum Support Price (MSP) to stabilize the market. The Cotton Association of India (CAI) estimates that India’s cotton output for 2024-25 will decline to 301.75 lakh bales, down from 327.45 lakh bales in 2023-24, mainly due to lower yields in Gujarat, Punjab, and Haryana. Despite this, cotton quality remains strong. The total cotton supply until January 2025 is projected at 234.26 lakh bales, consisting of 188.07 lakh bales from fresh pressings, 16 lakh bales of imports, and an opening stock of 30.19 lakh bales. Domestic consumption is expected to reach 315 lakh bales, with exports forecasted at 17 lakh bales, a decline from the previous season’s 28.36 lakh bales. On the global front, the U.S. cotton balance sheet saw minimal changes, with domestic mill use reduced by 100,000 bales and ending stocks rising accordingly. Technically, the market is under long liquidation, with open interest remaining unchanged at 253 while prices dropped Rs.470. Support is seen at Rs.53,730, and a further decline could test the same level. Resistance is also noted at Rs.53,730, and a move above this level could push prices higher.

COCUDAKL

BUY COCUDAKL MAR @ 2640 SL 2610 TGT 2680-2720. NCDEX

KAPAS

BUY KAPAS APR @ 1455 SL 1445 TGT 1465-1475. NCDEX

COTWASOIL

SELL COTWASOIL MAR @ 1310 SL 1320 TGT 1300-1290. NCDEX