IGI Logo

Cottoncandy

Cottoncandy prices experienced a slight decline of -0.14% yesterday, settling at 58600, driven by profit booking after a period of gains fueled by concerns over supply and sustained cotton consumption. The latest report from the USDA indicates a tightening of the 2023/24 U.S. cotton balance sheet, with lower ending stocks, higher exports, and lower mill use. Additionally, the world cotton ending stocks are lower, attributed to reduced beginning stocks and production, despite virtually unchanged consumption levels. Strong demand from China and Vietnam, as evidenced by USDA weekly sales reports, has led to a surge in net sales and exports, consistently exceeding previous marketing-year peaks. Meanwhile, the CAI maintains estimates for domestic consumption and production for the 2023-24 season, with consumption projected to remain flat and production estimates retained. Reports of declining infestation of pink bollworm in cotton crops across the country also contribute positively to market sentiment. From a technical standpoint, the market is currently under fresh selling pressure, with a gain in open interest by 4.01% alongside a decrease in prices by -80 rupees. Support levels are identified at 58280 and 57960, while resistance is anticipated at 58940, with a potential breakout leading to prices testing 59280. These technical indicators suggest a cautious approach for traders, considering the ongoing selling pressure and the need for confirmation of a bullish reversal before establishing long positions.

BUY COTTONCANDY MAR @ 58400 SL 58100 TGT 58800-59000. MCX

COCUDAKL

BUY COCUDAKL MAR @ 2420 SL 2380 TGT 2470-2500. NCDEX

KAPAS

BUY KAPAS APR @ 1475 SL 1460 TGT 1490-1500. NCDEX