Buy Cottoncandy Jan @ 53200 SL 52800 TGT 53600-53800. MCX - Kedia Advisory
Cottoncandy
Cotton candy prices settled lower by 0.08% at Rs.53,290, as the Cotton Association of India (CAI) revised its crop projections upwards for the 2024-25 season. The updated estimate now stands at 304.25 lakh bales, 2 lakh bales higher than earlier forecasts, largely driven by better-than-expected yields in Telangana, which saw an increase of 6 lakh bales. However, despite the upward revision in production, cotton prices remain under pressure, as the United States Department of Agriculture (USDA) raised global production and ending stocks projections for the 2024/25 crop year, adding downward pressure. A concerning trend has been observed in North India, with kapas arrivals down by 43% until November 30, compared to the same period last year. This has sparked supply chain concerns, with farmers holding onto their produce in anticipation of higher prices. Ginners and spinners in Punjab are also facing shortages of raw materials, further disrupting the supply chain. However, the downside to prices appears limited, with increased cotton yarn prices in South India due to rising demand from the garment sector and strong export orders. In terms of supply, total cotton supplies until December end were pegged at 176.04 lakh bales, and consumption estimates have been increased by 2 lakh bales to 315 lakh bales for the 2024-25 season. Cotton candy prices are witnessing long liquidation, with a significant drop in open interest by 14.85%, settling at 172. Support is at Rs.52,920, with potential to test Rs.52,540 if the trend continues. Resistance is observed at Rs.54,040, and a breakout above this level could lead to a test of Rs.54,780.
BUY COTTONCANDY JAN @ 53200 SL 52800 TGT 53600-53800. MCX
Cocudakl
BUY COCUDAKL FEB @ 2710 SL 2670 TGT 2750-2780. NCDEX
Kapas
BUY KAPAS APR @ 1480 SL 1470 TGT 1495-1505. NCDEX
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SELL COTWASOIL FEB @ 1235 SL 1245 TGT 1225-1215. NCDEX???????
