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Cotton

Cotton Candy prices settled down by 0.23% at 56,720, driven by moderate demand and weak export activity, particularly to Bangladesh. The USDA lowered India's cotton production forecast for the 2024-25 season to 30.72 million bales, with ending stocks reduced to 12.38 million bales due to crop damage from excessive rains and pest issues. Despite lower acreage, India's cotton output is expected to remain similar to last year's levels, supported by higher yields from timely rains and reduced pest activity. However, the cotton acreage has decreased by 11 lakh hectares compared to last year, as farmers shifted to other crops. India's cotton exports for the 2023-24 season are estimated at 28 lakh bales, up from 15.5 lakh bales in the previous year, driven by higher demand from countries like Bangladesh and Vietnam. Imports also increased to 16.4 lakh bales, up from 12.5 lakh bales in the previous year. Closing stocks as of September 30, 2024, are estimated at 23.32 lakh bales, down from 28.90 lakh bales a year ago, while consumption is projected at 317 lakh bales for the crop year. In the U.S., cotton production has been lowered due to damage from Hurricane Helene, while global cotton trade is expected to decline, particularly in China, leading to slightly lower global ending stocks. Technically, Cotton Candy is under long liquidation, with open interest dropping by 0.76%. Support is seen at 56,620, and a move below this level could test 56,510. Resistance is now expected at 56,870, and a move above this could lead prices to test 57,010.

BUY COTTONCANDY NOV @ 56700 SL 56400 TGT 57000-57300. MCX

Cocudakl

BUY COCUDAKL DEC @ 2920 SL 2880 TGT 2970-3020. NCDEX

Kapas

BUY KAPAS APR @ 1560 SL 1550 TGT 1570-1580. NCDEX

Cotton Wasoil

SELL COTWASOIL DEC @ 1170 SL 1180 TGT 1160-1150. NCDEX