12-11-2024 10:01 AM | Source: Kedia Advisory
BUY KAPAS APR @ 1570 SL 1555 TGT 1590-1600. NCDEX - Kedia Advisory

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COTTON CANDY

Cotton candy prices declined by -0.2% to 55,960, with weak yarn market demand and payment issues weighing on the sentiment. India's cotton production for 2024/25 is forecasted to drop by 7.4% to 30.2 million bales due to a decrease in planted area and crop damage from excessive rainfall. The USDA lowered its production estimate for India to 30.72 million bales and reduced ending stocks to 12.38 million, impacted by pest issues and adverse weather. Meanwhile, global production is expected to increase by over 200,000 bales, driven by gains in China, Brazil, and Argentina, offsetting declines in the U.S. and Spain. In India, the planted cotton area fell to 11.29 million hectares from 12.69 million last year, as farmers in key states like Gujarat shifted to groundnut cultivation for better returns. The reduced production will likely impact exports, with forecasts dropping to 1.8 million bales from 2.85 million bales last year, and imports are projected to rise to 2.5 million bales, supporting global cotton prices. The U.S. cotton balance sheet reflects lower production, mill use, and exports, with damage from Hurricane Helene reducing all-cotton production by over 300,000 bales. Global trade is also expected to fall due to reduced Chinese imports, and world ending stocks are slightly lower at 76.3 million bales. Technically, cotton candy is under fresh selling pressure with a 1.79% increase in open interest, settling at 171 contracts. Key support is at 55,880, with a potential further dip to 55,790 if this level breaks. On the upside, resistance is seen at 56,080, and a move above this level could test 56,190.

BUY COTTONCANDY NOV @ 55800 SL 55500 TGT 56200-56600. MCX

 

COCUDAKL

BUY COCUDAKL DEC @ 2950 SL 2900 TGT 3000-3040. NCDEX

 

KAPAS

BUY KAPAS APR @ 1570 SL 1555 TGT 1590-1600. NCDEX

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