Sell Cotwasoil Feb @ 1235 SL 1245 TGT 1225-1215. NCDEX - Kedia Advisory
Cottoncandy
Cottoncandy prices settled lower by 0.15% at Rs.54,220, driven by the latest WASDE report, which projected a rise in global cotton production and ending stocks for the 2024/25 crop year. Global cotton production is estimated to increase by over 1.2 million bales, reaching 117.4 million bales, primarily due to higher production in India and Argentina. However, concerns persist in India’s northern cotton-producing states (Punjab, Haryana, and Rajasthan), where kapas (unginned cotton) arrivals have dropped by 43% compared to last year. This reduction has caused supply chain issues, with some farmers holding back their produce in hopes of higher prices, while ginners and spinners are facing raw material shortages, particularly in Punjab. Cotton yarn prices in South India saw an uptick due to rising demand from the garment industry and strong export orders. For the 2024/25 season, the Cotton Association of India (CAI) has maintained cotton consumption at 313 lakh bales and pressing estimates at 302.25 lakh bales. Cotton imports into India are expected to rise to 25 lakh bales from 15.2 lakh bales last year, adding to the supply pressures. Additionally, U.S. cotton production has been revised upwards to nearly 14.3 million bales, further contributing to higher global stocks. Technically, Cottoncandy is experiencing long liquidation, with open interest dropping by 1.25%. Support is found at Rs.54,090, and a break below this level could lead to a test of Rs.53,970. Resistance is seen at Rs.54,340, with a move above this level potentially pushing prices to Rs.54,470.
BUY COTTONCANDY JAN @ 54200 SL 53900 TGT 54500-54800. MCX
Cocudakl
SELL COCUDAKL FEB @ 2790 SL 2830 TGT 2750-2720. NCDEX
Kapas
SELL KAPAS APR @ 1495 SL 1505 TGT 1485-1475. NCDEX
Cotwasoil
SELL COTWASOIL FEB @ 1235 SL 1245 TGT 1225-1215. NCDEX
