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COTTONCANDY

Cottoncandy prices declined by 0.34% to ?55,360 per candy due to profit booking after earlier support from rising cotton yarn demand in southern India and robust export orders. India's cotton production for 2024/25 is forecasted to drop by 7.4% year-on-year to 30.2 million bales due to reduced acreage and crop damage caused by excessive rainfall and pest infestations. The USDA lowered India’s production estimate to 30.72 million bales while reducing ending stocks to 12.38 million bales. At the same time, global production estimates were raised by 200,000 bales, driven by increases in China, Brazil, and Argentina, which offset declines in the U.S. and Spain. India’s cotton imports are projected to rise to 2.5 million bales from 1.75 million bales a year earlier, while exports may drop to 1.8 million bales from 2.85 million bales due to reduced domestic production. Farmers in Gujarat shifted to groundnuts for better returns, contributing to a 9% reduction in cotton acreage to 11.29 million hectares compared to 12.69 million hectares last year. On the global front, U.S. cotton production was lowered by 300,000 bales to 14.2 million due to hurricane damage, while global trade is expected to drop by 500,000 bales, primarily reflecting reduced Chinese imports. The market witnessed long liquidation with a 0.72% drop in open interest, settling at 276 contracts. Immediate support is at ?55,180, with further downside potential to ?54,990. Resistance is seen at ?55,530, and a breakout above this level could lead to prices testing ?55,690.

BUY COTTONCANDY JAN @ 55300 SL 55000 TGT 55700-56000. MCX

COCUDAKL

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

KAPAS

BUY KAPAS APR @ 1520 SL 1510 TGT 1530-1540. NCDEX

COTWASOIL

SELL COTWASOIL DEC @ 1250 SL 1260 TGT 1240-1230. NCDEX