Buy Kapas Apr @ 1480 SL 1470 TGT 1495-1505. NCDEX - Kedia Advisory
Cottoncandy
BUY COTTONCANDY MAR @ 54000 SL 53700 TGT 54300-54500. MCX
Cottoncandy prices settled 0.28% higher at Rs.54,150 as the Cotton Corporation of India (CCI) is expected to procure over 100 lakh bales at the Minimum Support Price (MSP) in the current season. The Cotton Association of India (CAI) projects overall cotton output for 2024-25 to drop to 301.75 lakh bales due to lower yields in Gujarat and northern states, compared to 327.45 lakh bales in the previous season. Despite the decline in production, the quality of cotton remains strong. By the end of January 2025, total cotton supply is estimated at 234.26 lakh bales, including 188.07 lakh bales of fresh pressings, 16 lakh bales of imports, and 30.19 lakh bales of opening stock. Domestic consumption is projected at 315 lakh bales for the season, while exports are expected to decline to 17 lakh bales from 28.36 lakh bales in 2023-24. Stocks at the end of January are estimated at 112.26 lakh bales, with 27 lakh bales held by textile mills and 85.26 lakh bales with CCI and other market participants. Globally, Brazil’s cotton production for 2024-25 is expected to rise by 1.6% to 3.76 million tons, with a 4.8% expansion in planting area. Meanwhile, China’s cotton production is projected to increase by one million bales. Technically, the market remains in short covering, with open interest unchanged at 258 contracts. Cottoncandy has support at Rs.54,150, while resistance is also seen at the same level. A breakout above could push prices higher.
COCUDAKL
BUY COCUDAKL MAR @ 2670 SL 2635 TGT 2710-2740. NCDEX
KAPAS
BUY KAPAS APR @ 1480 SL 1470 TGT 1495-1505. NCDEX
COTWASOIL
SELL COTWASOIL MAR @ 1270 SL 1280 TGT 1260-1250. NCDEX
