Buy Cottoncandy Nov @ 56700 SL 56300 TGT 57100-57400. MCX - Kedia Advisory
CottonCandy
Cottoncandy prices settled up by 0.25% at Rs.56,950, driven by concerns over India's cotton production for the 2024-25 season. The USDA has revised India's cotton production forecast down to 30.72 million bales, with ending stocks reduced to 12.38 million bales due to crop damage from excessive rains and pest issues. Acreage in cotton has also dropped by around 9% compared to last year, at 110.49 lakh hectares, as farmers shift to more lucrative crops. Despite this, upside momentum remains limited due to moderate demand and weak export activity, particularly to Bangladesh. India’s overall cotton output for the 2024-25 cropping season is expected to remain at last year’s levels, aided by timely rains and lower pest incidence. However, the cotton crop has been delayed by a month in key producing states like Maharashtra and Gujarat. Cotton exports for the 2023-24 season are estimated at around 28 lakh bales, driven by demand from countries like Bangladesh and Vietnam, a significant increase from last year’s 15.5 lakh bales. On the global front, the U.S. cotton balance sheet for 2024/25 reflects lower production, exports, and ending stocks, with U.S. production down by about 600,000 bales. Global cotton production has also been reduced, with smaller crops in the U.S., India, and Pakistan offset by a larger crop in China. World consumption has been revised down by 460,000 bales, and world ending stocks are now forecasted to be 76.5 million bales. Technically, the market is witnessing fresh buying with open interest increasing by 0.78%. Support is seen at Rs.56,780, with a potential test of Rs.56,600 if breached. Resistance is likely at Rs.57,120, with a possible move to Rs.57,280 if broken.
BUY COTTONCANDY NOV @ 56700 SL 56300 TGT 57100-57400. MCX
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