BUY COTTONCANDY NOV @ 56800 SL 56500 TGT 57200-57400. MCX - Kedia Advisory
Cotton
Cottoncandy prices rose by 0.71%, settling at?57,120, driven by concerns over a lowerproduction forecast for India's 2024-25 cotton season, which the USDA has reduced to 30.72million bales due to crop damage from excessive rains and pest issues. Additionally, India’scotton ending stocks are forecast to drop to 12.38 million bales. However, the upside waslimited due to moderate demand and weak export activity, particularly to Bangladesh.Cotton acreage in India for the current kharif season is down by 9% to 110.49 lakh hectarescompared to last year’s 121.24 lakh hectares, as farmers have shifted to other crops. TheCotton Association of India (CAI) estimated the closing stocks for the 2023-24 season at30.19 lakh bales, marginally higher than the 28.90 lakh bales a year ago. Imports rosesignificantly during the year to 17.5 lakh bales, boosting overall supply to 371.69 lakh bales.Exports also increased by 84% year-on-year to 28.50 lakh bales, mainly driven by demandfrom Bangladesh and Vietnam. On the global front, the U.S. cotton balance sheet for2024/25 reflects lower production, mill use, and exports due to the impact of HurricaneHelene. World production is expected to rise slightly, with increases in China, Brazil, andArgentina offsetting declines in the U.S. and Spain. Technically, Cottoncandy is under shortcovering, with open interest remaining unchanged. The market is finding support at?56,880,with a potential drop to?56,630 if breached. Resistance is seen at?57,260, and a moveabove this could lead to prices testing?57,390, suggesting the possibility of further price increases
BUY COTTONCANDY NOV @ 56800 SL 56500 TGT 57200-57400. MCX
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