Buy Kapas Apr @ 1485 SL 1475 TGT 1495-1505. NCDEX - Kedia Advisory
Cottoncandy
Cottoncandy prices declined by 0.32% to ?53,450, pressured by higher global production and ending stock projections for the 2024/25 crop year as highlighted in the recent WASDE report. Global cotton production is estimated to increase by over 1.2 million bales to 117.4 million, driven by larger crops in India and Argentina. Despite this, cotton arrivals in northern Indian states—Punjab, Haryana, and Rajasthan—have dropped 43% year-on-year, creating raw material shortages for ginners and spinners, especially in Punjab. Some farmers are withholding produce in anticipation of higher prices, limiting downside pressure. Domestic cotton consumption for the 2024/25 season is pegged at 313 lakh bales, while cotton pressing is projected to remain steady at 302.25 lakh bales. India’s cotton imports are expected to rise to 25 lakh bales, up by 9.8 lakh bales from the previous season, with 9 lakh bales having already arrived at Indian ports by November 30, 2024. Ending stocks for 2024/25 are forecast at 26.44 lakh bales, lower than the 30.19 lakh bales recorded last year. Globally, cotton consumption is expected to rise, supported by increased demand in India, Pakistan, and Vietnam, while world trade is marginally higher due to export gains in Brazil and Benin. Technically, the market witnessed long liquidation, with open interest dropping 9.43% to 240 contracts. Prices are now supported at ?53,130, with further downside potentially testing ?52,800. Resistance is seen at ?54,020, and a move above this level could push prices towards ?54,580.
BUY COTTONCANDY JAN @ 53400 SL 53100 TGT 53700-53900. MCX
COCUDAKL
SELL COCUDAKL FEB @ 2780 SL 2820 TGT 2740-2710. NCDEX
KAPAS
BUY KAPAS APR @ 1485 SL 1475 TGT 1495-1505. NCDEX
COTWASOIL
SELL COTWASOIL FEB @ 1225 SL 1235 TGT 1215-1205. NCDEX
