Buy COTTONCANDY Sep @ 58800 SL 58500 TGT 59300-59600. MCX - Kedia Advisory
Cottoncandy
Cottoncandy prices settled up by 0.27% at ?59,160, as the cotton acreage in the current kharif cropping season dropped by around 9%, totaling 110.49 lakh hectares compared to 121.24 lakh hectares last year. The Cotton Association of India (CAI) expects the total acreage to be around 113 lakh hectares this year, down from 127 lakh hectares in the previous year. This decline is attributed to cotton farmers shifting to other crops due to lower yields and high production costs. Additionally, the cotton balance sheet is expected to tighten due to increased exports to Bangladesh, with exports rising unexpectedly from 15 lakh bales to 28 lakh bales. India's cotton production and consumption for 2023-24 are expected to be balanced at around 325 lakh bales, with 28 lakh bales exported and 13 lakh bales imported. Stocks for the next year are projected to be tighter, especially if the new crop is delayed. Current stock levels include 25 lakh bales with spinning mills, 15 lakh bales with ginners, and 20 lakh bales with the Cotton Corporation of India, with another 10 lakh bales expected to arrive by September. Globally, cotton production, consumption, and ending stocks for 2024-25 are all reduced, with production down by 2.6 million bales, primarily from the U.S. and India, and consumption down by 1 million bales, mainly in China. Technically, the market witnessed short covering with open interest dropping by 1.27% to 156. Cottoncandy has support at ?59,120, with a potential test of ?59,080. Resistance is seen at ?59,200, and a break above could push prices to ?59,240.
BUY COTTONCANDY SEP @ 58800 SL 58500 TGT 59300-59600. MCX
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