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Cottoncandy

Cottoncandy futures declined by 0.11% to ?54,040 as the Cotton Association of India (CAI) revised its crop projections upward by 2 lakh bales for the 2024-25 season, estimating total production at 304.25 lakh bales of 170 kg each. The revision is primarily due to increased output in Telangana, where production estimates were raised by 6 lakh bales. Additionally, domestic consumption is also expected to rise by 2 lakh bales, reflecting emerging market trends. The Cotton Corporation of India (CCI) is projected to purchase over 100 lakh bales at the Minimum Support Price (MSP) in the current cotton year, further influencing market sentiments. On the global front, Brazil’s 2024-25 cotton production forecast was reduced to 3.79 million tonnes from 3.83 million tonnes due to lower planted acreage in Mato Grosso. In the U.S., the 2024/25 cotton balance sheet saw minimal changes, with mill use reduced by 100,000 bales and ending stocks raised accordingly, leading to a stocks-to-use ratio of 39%. The season average upland farm price projection was lowered to 63.5 cents per pound. Meanwhile, world cotton production and ending stocks were increased due to a 1-million-bale rise in China's cotton crop, although declines in Argentina and Kazakhstan offset some of these gains. Technically, the market is under long liquidation, with open interest remaining unchanged at 258 contracts while prices dropped by Rs 60. Cottoncandy has support at Rs 53,790, and a break below could lead to Rs 53,550, while resistance is seen at Rs 54,300, with a potential test of Rs 54,570 if momentum strengthens.

BUY COTTONCANDY MAR @ 53700 SL 53400 TGT 54000-54200. MCX

COCUDAKL

BUY COCUDAKL MAR @ 2700 SL 2670 TGT 2735-2770. NCDEX

KAPAS

BUY KAPAS APR @ 1475 SL 1465 TGT 1485-1495. NCDEX

COTWASOIL

SELL COTWASOIL MAR @ 1255 SL 1265 TGT 1245-1235. NCDEX