Sell Kapas Apr @ 1600 SL 1610 TGT 1590-1580. NCDEX - Kedia Advisory
COTTONCANDY
Cottoncandy prices declined by 0.47% to settle at Rs.53,050, pressured by slightly upward-revised production estimates and weak trade fundamentals. The Cotton Association of India (CAI) increased India’s cotton output forecast marginally to 291.35 lakh bales from 291.30 lakh bales, mainly due to higher production in Odisha. However, consumption and export trends remain tepid. CAI slashed its consumption estimate for the 2024–25 season by 8 lakh bales to 307 lakh bales, citing reduced offtake. Additionally, cotton exports are expected to fall significantly—estimated at 15 lakh bales versus 28.36 lakh bales last year. So far, 10 lakh bales have been shipped since October 2024. Cotton imports have surged to 33 lakh bales, with 27.5 lakh bales already imported by April, more than doubling last season's figure of 15.2 lakh bales. Consequently, ending stocks for the 2024–25 season are projected to rise to 32.54 lakh bales from 30.19 lakh bales last year, indicating ample domestic availability. Globally, the U.S. cotton balance sheet shows a slight downgrade in exports and a corresponding rise in ending stocks to 5 million bales. World production and consumption have also been revised down. Lower output in Argentina and other regions outweighs gains in China. Meanwhile, mill use and imports declined, especially in China and Indonesia, dampening overall trade sentiment. Technically, the market is experiencing long liquidation, with open interest unchanged at 72 while prices fell Rs.250. Immediate support lies at Rs.53,020 and further at Rs.53,000, while resistance is seen at Rs.53,070, with a breakout potentially testing Rs.53,100.
SELL COTTONCANDY JUL @ 53200 SL 53500 TGT 52900-52600. MCX
COCUDAKL
SELL COCUDAKL JUL @ 3120 SL 3160 TGT 3080-3050. NCDEX
KAPAS
SELL KAPAS APR @ 1600 SL 1610 TGT 1590-1580. NCDEX
