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Cottoncandy

Cottoncandy prices closed higher by 0.3% at 60080, driven by concerns over supply and sustained cotton consumption. The 2023/24 U.S. cotton balance sheet revealed lower ending stocks, higher exports, and lower mill use, maintaining unchanged production. The export forecast was raised to 12.3 million bales, contributing to ending stocks estimated at 2.8 million bales, equivalent to 20% of total disappearance. World cotton ending stocks for 2023/24 were nearly 700,000 bales lower due to lower beginning stocks and production. India's cotton exports in February are set to reach the highest level in two years, with contracts signed for 400,000 bales, driven by competitive pricing. The country's cotton production for the 2023/24 marketing year is expected to fall 7.7% from the previous year to 29.41 million bales, the lowest since 2007/08. Despite the decline in production, India is poised to export 2 million bales, surpassing earlier expectations. The Cotton Association of India (CAI) maintains estimates for domestic consumption at 311 lakh bales for the 2023-24 season. The pressing estimate for the season is at 294.10 lakh bales. CAI notes a decline in pink bollworm infestation, reducing from 30.62% in 2017-18 to 10.80% in 2022-23. Technically, the market is witnessing fresh buying, with a 0.44% increase in open interest to 458, coupled with a price rise of 180 rupees. Cottoncandy finds support at 59580, with a potential test of 59070 levels below. On the upside, resistance is likely at 60420, and a breakthrough could lead to testing 60750. Traders should closely monitor global cotton supply dynamics, export trends, and pest infestation for informed decision-making in the Cottoncandy market.

BUY COTTONCANDY MAR @ 59800 SL 59500 TGT 60200-60400. MCX

COCUDAKL

BUY COCUDAKL MAR @ 2600 SL 2560 TGT 2650-2680. NCDEX

KAPAS

BUY KAPAS APR @ 1570 SL 1555 TGT 1590-1600. NCDEX