Buy Cottoncandy Sep @ 56700 SL 56400 TGT 57100-57400. MCX - Kedia Advisory
Cottoncandy
Cotton Candy prices increased by 1.07%, closing at 56,900, supported by a significant reduction in cotton acreage across key producing states in India. Punjab, Haryana, and Rajasthan collectively reported a substantial decline in the area under cotton, dropping to 10.23 lakh hectares from last year’s 16 lakh hectares. Punjab's cotton area shrank drastically to 97,000 hectares, a far cry from the 7.58 lakh hectares seen during the 1980s and 1990s. Similarly, Rajasthan and Haryana saw their cotton acreage reduce to 4.75 lakh hectares and 4.50 lakh hectares, respectively, compared to last year's figures. The delay in the arrival of shipments from major global producers like the US and Brazil has also boosted demand for Indian cotton, especially from mills in neighbouring countries. Additionally, firm cottonseed prices are supporting the upward trend in natural fiber prices, even as sowing for the Kharif 2024 season begins in southern states like Karnataka, Telangana, and Andhra Pradesh following the onset of monsoon rains. The U.S. Department of Agriculture’s (USDA) 2024/25 cotton projections indicate higher beginning and ending stocks compared to previous estimates. Despite unchanged production, domestic use, and export forecasts, the season average upland farm price has been revised down by 4 cents to 70 cents per pound, reflecting a decline in new-crop cotton futures. Ending stocks in the U.S. are projected to increase by 400,000 bales to 4.1 million. Globally, the 2024/25 cotton balance sheet shows higher beginning stocks, production, and consumption, with world ending stocks projected at 83.5 million bales, up by 480,000 bales from May. Technically, the Cotton Candy market is under fresh buying pressure, as evidenced by a 0.6% increase in open interest, settling at 169 contracts. Prices rose by 600 rupees, with strong support currently at 56,900. If the market holds above this level, resistance is expected at 56,900, with potential to test higher levels if the bullish momentum continues.
BUY COTTONCANDY SEP @ 56700 SL 56400 TGT 57100-57400. MCX
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