Buy Kapas Apr @ 1445 SL 1435 TGT 1455-1465. NCDEX - Kedia Advisory
Cottoncandy
Cottoncandy prices edged up 0.26% to Rs.53,040, supported by supply concerns after the Cotton Association of India (CAI) cut its 2024-25 crop estimate by 2% to 295.30 lakh bales from the earlier 301.75 lakh bales forecast, driven by lower yields in central India. A 10% decline in planting area contributed to the reduced output, a notable drop from 327.45 lakh bales last season. The government’s second advance estimate also trimmed production to 294.25 lakh bales, down 1.5% from earlier predictions. Gujarat and Maharashtra are expected to see reductions of 4 lakh bales and 3 lakh bales respectively, while Odisha may gain 0.55 lakh bales. Cotton imports are forecasted to double to 32 lakh bales, with 22 lakh bales already imported by February-end. Domestic consumption remains steady at 315 lakh bales, though exports are projected to fall 40% to 17 lakh bales from 28.36 lakh bales last year. Closing stocks are expected to shrink to 23.49 lakh bales, down from 30.19 lakh bales in 2024. Globally, Brazil’s production is set to rise 1.6% to 3.7616 million tons, with planting area expanding 4.8%, supporting strong supply potential. Meanwhile, the U.S. balance sheet shows minimal changes, with domestic mill use reduced by 100,000 bales, pushing ending stocks higher. Technically, Cottoncandy is in short covering as open interest dropped -12.12% to 174 contracts while prices rose by Rs.140. Support is at Rs.52,850, with further downside to Rs.52,670, while resistance is seen at Rs.53,150, and a breakout could push prices to Rs.53,270.
BUY COTTONCANDY MAR @ 53000 SL 52700 TGT 53300-53500. MCX
COCUDAKL
SELL COCUDAKL APR @ 2780 SL 2820 TGT 2740-2700. NCDEX
KAPAS
BUY KAPAS APR @ 1445 SL 1435 TGT 1455-1465. NCDEX
