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Cotton

Cotton Candy demonstrated strength in the market, settling up by 1.88% at 62820, buoyed by the prospect of tight supplies against relatively stable demand. The USDA's February WASDE report projected a reduction of 355,000 bales in the 2023/24 world cotton production, primarily due to cuts in Australia and Benin, partly offset by smaller increases elsewhere. Lower beginning stocks and production contributed to a nearly 700,000 bales reduction in world cotton ending stocks for 2023/24. Despite variations in consumption across countries, global consumption is expected to remain virtually unchanged. India's cotton exports in February are anticipated to reach the highest level in two years, driven by attractive prices making Indian cotton competitive for Asian buyers. Contracts for exporting 400,000 bales were signed in February, mainly to China, Bangladesh, and Vietnam. The rally in global prices has made Indian cotton the cheapest in the world, resulting in a surge in exports. The Cotton Association of India (CAI) predicts India's cotton production to fall by 7.7% in 2023/24, reaching the lowest level since 2007/08 at 29.41 million bales. Despite the decline in production, CAI retained its cotton pressing estimate and highlighted the potential for India to export 2 million bales in the 2023/24 marketing year, surpassing earlier expectations. Technically, the cotton candy market is undergoing short covering, with unchanged open interest settling at 477 and a price increase of 1160 rupees. Key support levels are identified at 62520 and 62210, while resistance is expected at 63320, with a potential breakthrough leading to a test of 63810.

BUY COTTONCANDY MAR @ 62500 SL 62200 TGT 63000-63400. MCX

COCUDAKL

BUY COCUDAKL MAR @ 2625 SL 2585 TGT 2660-2700. NCDEX

KAPAS

BUY KAPAS APR @ 1635 SL 1620 TGT 1645-1655. NCDEX