IGI Logo

Cottoncandy:

Cotton prices, represented by Cottoncandy, registered a notable gain of 1.44% yesterday, settling at 57840. The upward movement is attributed to a combination of factors, including a reduction in the current season's estimated cotton production, decreased world consumption forecast for 2023/24, and higher projected ending stocks globally. The world consumption estimate for 2023/24 has decreased by 1.3 million bales, with reductions noted for major cotton-consuming countries such as India, Indonesia, Pakistan, Uzbekistan, and Turkey. The higher beginning stocks, increased production (except for the U.S.), and lower consumption have led to a 2.0 million bales rise in world ending stocks for 2023/24. The Cotton Association of India (CAI) maintains a flat estimate for domestic consumption of cotton at 311 lakh bales for the 2023-24 season. CAI's projections for total cotton supply until the end of the cotton season in September 2024 remain at 345 lakh bales. Brazil's cotton production reached a historic high in the 2022-23 season, contributing to a rise in global supply. However, sluggish demand, influenced by unfavorable economic conditions, resulted in bloated inventories and reduced cotton prices worldwide. Despite the global oversupply situation, there are reports of a decline in pink bollworm infestation in the cotton crop in India, reducing from 30.62% in 2017-18 to 10.80% in 2022-23. Technically, the cotton market is experiencing fresh buying, with a 7.8% increase in open interest, settling at 304. Cottoncandy finds support at 57240, with a breach potentially leading to a test of 56630 levels. Resistance is anticipated at 58220, and a move above could see prices testing 58590

BUY COTTONCANDY MAR @ 57600 SL 57400 TGT 58000-58300. MCX

Cocudakl:

BUY COCUDAKL FEB @ 2450 SL 2400 TGT 2500-2540. NCDEX

Kapas:

BUY KAPAS APR @ 1470 SL 1450 TGT 1490-1510. NCDEX