Buy Cottoncandy NOV @ 60500 SL 60300 TGT 60800-61000. MCX - Kedia Advisory
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COTTON CANDY
Cotton faced a slight dip of -0.3% yesterday, closing at 60520, largely due to concerns about
demand from China, which weighed on investor sentiment. Additionally, the cotton belt in
Haryana is grappling with an infestation of pink bollworm, adding to uncertainties in the cotton
market. The global cotton industry is experiencing significant reductions in both production and
consumption, as outlined in the 2023-24 outlook for cotton. In the U.S., the projections for 2023/24
include higher beginning stocks but lower production, exports, and ending stocks. Unexpectedly
large warehouse stocks reported for July 31, 2023, influenced the beginning stocks for 2022/23.
U.S. cotton production is forecasted to decrease by 860,000 bales this month, with declines in the
Southeast and Southwest regions. While consumption remains unchanged, exports are down by
200,000 bales, and ending stocks are 100,000 bales lower. The projected season-average price for
upland cotton in 2023/24 is 80 cents per pound, up by 1 cent from the previous month. On the
global stage, the 2023/24 world cotton projections indicate lower beginning stocks, production,
consumption, trade, and ending stocks compared to the previous month's report. India expects
to produce 330 to 340 lakh bales (each 170 kg) of cotton in the upcoming 2023-2024 cotton
season, beginning on October 1. This announcement was made by J. Thulasidharan, President of
the Indian Cotton Federation, who also mentioned that cotton sowing had surpassed 12.7 million
hectares. In the current season, 335 lakh bales of cotton have already entered the market, with
more arriving. Cotton cultivation in Telangana saw a slight reduction due to unfavorable seasonal
conditions in certain areas. Cotton picking is expected to gain momentum in the state in the
coming weeks. From a technical perspective, the market is experiencing fresh selling, with a 1%
increase in open interest, settling at 101. Prices have dropped by -180 rupees. Cotton is currently
finding support at 60320, and if it falls below this level, it could test 60110. On the upside, resistance
is likely at 60720, and a breakthrough could push prices to 60910
BUY COTTONCANDY NOV @ 60500 SL 60300 TGT 60800-61000. MCX
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BUY COCUDAKL DEC @ 2600 SL 2560 TGT 2650-2680. NCDEX
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BUY KAPAS APR @ 1570 SL 1555 TGT 1590-1600. NCDEX
