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Cotton

Cotton prices for the Cottoncandy variety experienced a decline of -1.4%, settling at 61940, driven by the anticipation of tight supplies against relatively stable demand. The USDA's latest February WASDE report revealed a reduction in the projected 2023/24 world cotton production by 355,000 bales, with cuts in Australia and Benin offset by smaller increases elsewhere. World ending stocks for 2023/24 are nearly 700,000 bales lower than in January, attributed to reduced supplies from lower beginning stocks and production. India's cotton exports are set to reach their highest level in two years, with traders signing contracts to export 400,000 bales in February, primarily to China, Bangladesh, and Vietnam. The rally in global prices has made Indian cotton highly competitive, prompting an upward revision in the expected exports for the 2023/24 marketing year to 2 million bales, surpassing the earlier expectation of 1.4 million bales. India's cotton production for 2023/24 is anticipated to fall by 7.7% to 29.41 million bales, the lowest since 2007/08. The Cotton Association of India (CAI) has retained its cotton pressing estimate at 294.10 lakh bales, equivalent to 308.62 lakh running bales. The total cotton supply until the end of January 2024 is estimated at 210.05 lakh bales, with domestic consumption at 110.00 lakh bales and export shipments at 9.00 lakh bales. Technically, the market is witnessing long liquidation, evident in a -1.68% drop in open interest to settle at 469 contracts. Prices decreased by -880 rupees. Cottoncandy finds support at 61620, with a potential test of 61310 on the downside. Resistance is likely at 62420, and a breakout could lead to further testing of 62910 levels.

SELL COTTONCANDY MAR @ 62200 SL 62500 TGT 61800-61500. MCX

COCUDAKL

BUY COCUDAKL MAR @ 2650 SL 2620 TGT 2690-2720. NCDEX

KAPAS

BUY KAPAS APR @ 1650 SL 1635 TGT 1670-1685. NCDEX