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Cottoncandy

Cottoncandy prices dipped by -0.58%, settling at 53,040, driven by increased supply and sluggish mill buying, as mills remain well-stocked and avoid immediate purchases. The Cotton Association of India (CAI) lowered its 2024-25 crop estimate by 2% to 295.30 lakh bales, citing weaker yields in central India. This marks a notable drop from last season’s 327.45 lakh bales, influenced by a 10% decline in cultivation area. The government’s second advance estimate further revised projections down to 294.25 lakh bales. Regionally, Gujarat and Maharashtra are set for reduced output by 4 lakh and 3 lakh bales respectively, while Odisha is forecasted to rise by 0.55 lakh bales. Imports are projected to surge to 32 lakh bales, more than double last season’s 15.2 lakh bales, with 22 lakh bales imported by February-end. Domestic consumption remains steady at 315 lakh bales, with 142 lakh bales consumed by February. Exports are predicted to fall 40% to 17 lakh bales from 28.36 lakh bales last year. Closing stocks are expected to drop to 23.49 lakh bales, down from 30.19 lakh bales. Globally, Brazil’s production is forecasted to rise 1.6% to 3.7616 million tons, with a 4.8% expansion in planting areas. The U.S. sees minor changes, with mill use down 100,000 bales and ending stocks increased accordingly. Technically, the market is under long liquidation, with open interest dropping by -10.07% to 134. Support is seen at 53,010, with a potential test at 52,980. Resistance stands at 53,060, with a break above possibly testing 53,080.

BUY COTTONCANDY MAR @ 53000 SL 52700 TGT 53300-53500. MCX

COCUDAKL

BUY COCUDAKL APR @ 2740 SL 2710 TGT 2770-2800. NCDEX

KAPAS

BUY KAPAS APR @ 1455 SL 1445 TGT 1465-1475. NCDEX