Buy Kapas Apr @ 1605 SL 1590 TGT 1625-1640. NCDEX - Kedia Advisory
Cotton
Cotton prices, represented by Cottoncandy, recorded a substantial gain of 1.21%, settling at 61660, fueled by concerns over supply and sustained cotton consumption. The U.S. cotton balance sheet for 2023/24 showed lower ending stocks relative to the previous month, with higher exports and lower mill use, while production remained unchanged. The export forecast was raised by 200,000 bales to 12.3 million, reflecting a robust pace of shipments and sales. World 2023/24 cotton ending stocks decreased by nearly 700,000 bales, with lower beginning stocks and production reducing supplies. While world consumption remained virtually unchanged, with increases in China and Vietnam offset by reductions in Turkey, the United States, and Thailand. India's cotton exports are set to surge to the highest level in two years in February, driven by a rally in global prices, making Indian cotton attractive for Asian buyers. Indian traders signed contracts to export 400,000 bales, mainly to China, Bangladesh, and Vietnam, making Indian cotton the cheapest in the world. Despite a decline in domestic cotton production by 7.7% to 29.41 million bales in 2023/24, the Cotton Association of India (CAI) expects India's cotton exports to surpass earlier expectations, reaching 2 million bales. Technically, the cotton market is undergoing short covering, evident in a -5.73% drop in open interest to settle at 477, coupled with a price increase of 740 rupees. Support for Cottoncandy is identified at 61100, with a potential test of 60550 below, while resistance is likely at 62120, and a move above could lead to testing 62590.
BUY COTTONCANDY MAR @ 61500 SL 61200 TGT 61800-62000. MCX
COCUDAKL
BUY COCUDAKL MAR @ 2600 SL 2550 TGT 2650-2680. NCDEX
KAPAS
BUY KAPAS APR @ 1605 SL 1590 TGT 1625-1640. NCDEX