Buy Kapas APR @ 1605 SL 1595 TGT 1625-1640. NCDEX - Kedia Advisory
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Cotton
Cotton candy prices experienced a slight dip of -0.27%, settling at 58,460, largely attributed to profit booking following a recent price increase. The decline comes as India's cotton production for the 2023/24 season is expected to fall by 7.5% to 29.5 million bales due to lower planted area and the impact of El Nino weather conditions, according to the CAI. The CAI also noted that imports of cotton could increase to 2.2 million bales in the current marketing year, starting from October 1, compared to 1.25 million bales in the previous year. The USDA's October WASDE report supports this downward trend in cotton production, as it lowered the U.S. production forecast for 2023/24 to 12.8 million bales due to reduced yields in Texas. A significant development in the global cotton landscape is the projection that Brazil's cotton production in 2023/24 is expected to surpass that of the United States for the first time. India's own cotton production for the 2022-23 season was slightly revised upwards by the CAI to 31.8 million bales, but this remains lower than the government's estimate of 34.3 million bales. Looking ahead to the 2023-24 season, the Indian Cotton Federation anticipates a production of 33-34 million bales. From a technical perspective, the cotton candy market is currently witnessing long liquidation, with a 2.86% drop in open interest, settling at 102, while prices declined by -160 rupees. Support levels for cotton candy stand at 58,340 and 58,230, with resistance likely at 58,580, and a move above this level could see prices testing 58,710.
BUY COTTONCANDY NOV @ 58400 SL 58100 TGT 58800-59000. MCX
Cocudakl
SELL COCUDAKL DEC @ 2960 SL 3000 TGT 2900-2860. NCDEX
Kapas
BUY KAPAS APR @ 1605 SL 1595 TGT 1625-1640. NCDEX
