Buy Cottoncandy Mar @ 52500 SL 52200 TGT 52800-53000. MCX - Kedia Advisory
Cottoncandy
Cottoncandy prices increased by 0.36% to settle at 52,750, driven by reduced crop estimates and supply concerns. The Cotton Association of India (CAI) lowered its 2024-25 crop projection by 2% to 295.30 lakh bales, down from the previous estimate of 301.75 lakh bales, citing lower output in central India. The government’s second advance estimates also reduced the cotton crop forecast by 1.5% to 294.25 lakh bales. A 10% decline in the sown area has significantly impacted this year’s production, compared to last season’s 327.45 lakh bales. CAI reported a sharp increase in cotton imports, expected to double to 32 lakh bales for the 2024-25 season, compared to 15.2 lakh bales last season. By February-end, around 22 lakh bales had already been imported. Domestic consumption is estimated at 315 lakh bales, with 142 lakh bales consumed by February. However, exports are forecasted to decline by 40% to 17 lakh bales, compared to 28.36 lakh bales in the previous year. Closing stocks are projected to be lower at 23.49 lakh bales by the end of the season. Globally, Brazil's cotton production is set to rise by 1.6% to 3.76 million tons, with a 4.8% expansion in the planting area. Technically, the market is experiencing short covering, with a significant 66.1% drop in open interest to settle at 20 while prices rose by 190 rupees. Support is seen at 52,430, with further downside potential at 52,120, while resistance is at 52,930, with an upward move potentially testing 53,120.
BUY COTTONCANDY MAR @ 52500 SL 52200 TGT 52800-53000. MCX
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