Sell Kapas Apr @ 1470 SL 1480 TGT 1460-1450. NCDEX - Kedia Advisory
Cottoncandy
Cottoncandy prices declined by 0.36% yesterday, settling at Rs.55,300 amid profit booking, following recent gains driven by supply concerns. The Cotton Association of India (CAI) further trimmed its domestic crop forecast by 4 lakh bales to 291.30 lakh bales of 170 kg each, citing lower production in Maharashtra. Total cotton supply till March, including 25 lakh bales of imports and 30.19 lakh bales of opening stocks, was estimated at 306.83 lakh bales. End-March stocks were reported at 127.83 lakh bales, with a significant portion held by CCI, Maharashtra Federation, and traders. On the trade front, India’s cotton exports for the 2024–25 season are projected sharply lower at 16 lakh bales compared to 28.36 lakh bales in the previous year, while imports are forecast to more than double to 33 lakh bales, up from 15.20 lakh bales last season. The rise in import estimates is driven by expectations of tighter domestic availability, despite stable consumption levels. However, mill buying remains muted due to ample stocks, limiting upside potential. Internationally, the U.S. cotton balance sheet for 2024–25 saw minor adjustments, including a cut of 100,000 bales in exports and a corresponding increase in ending stocks to 5 million bales. Global production and consumption were both lowered, raising ending stocks, with notable declines in Argentina and Indonesia partially offset by gains in China and Turkey. Technically, Cottoncandy is experiencing fresh selling pressure, with open interest rising 0.4% to 254 contracts as prices dropped by Rs.200. Immediate support lies at Rs.55,300, with resistance also at Rs.55,300; a breakout could see prices testing higher levels.
SELL COTTONCANDY MAY @ 55500 SL 55800 TGT 55200-55000. MCX
Cocudakl
SELL COCUDAKL MAY @ 2950 SL 2990 TGT 2910-2980. NCDEX
KAPAS
SELL KAPAS APR @ 1470 SL 1480 TGT 1460-1450. NCDEX
