Buy Cottoncandy Mar @ 54000 SL 53700 TGT 54300-54500. MCX - Kedia Advisory
Cottoncandy
BUY COTTONCANDY MAR @ 54000 SL 53700 TGT 54300-54500. MCX
Cottoncandy prices declined by 0.4% to settle at Rs.54,200, influenced by strong supply projections from Brazil and higher procurement by the Cotton Corporation of India (CCI). Brazil’s 2024-25 cotton production is expected to rise by 1.6% to 3.7616 million tons, with a 4.8% increase in planted area, reinforcing global supply strength. Meanwhile, CCI is set to procure over 100 lakh bales at the Minimum Support Price (MSP) this season, supporting domestic cotton prices. The Cotton Association of India (CAI) has estimated that India’s cotton production for the 2024-25 season will decline to 301.75 lakh bales from 327.45 lakh bales in the previous season due to lower yields in Gujarat, Punjab, and Haryana. By the end of January 2025, total cotton supply is projected at 234.26 lakh bales, including fresh pressings of 188.07 lakh bales, imports of 16 lakh bales, and an opening stock of 30.19 lakh bales. Consumption during this period stood at 114 lakh bales, while exports were recorded at 8 lakh bales. The season's total exports are forecasted to drop to 17 lakh bales from 28.36 lakh bales last season. In the global market, the U.S. cotton balance sheet saw minimal changes, with domestic mill use declining slightly, raising ending stocks. Technically, the market is under long liquidation, with open interest unchanged at 253 while prices declined by Rs.220. Immediate support for Cottoncandy is at Rs.54,200, with further downside possible towards the same level. Resistance is seen at Rs.54,200, and a move above this level could push prices higher.
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