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Cottoncandy

Cottoncandy, a significant commodity in the textile industry, recorded a decline of -0.5%, settling at 60,100, primarily due to profit booking activities. Prices had previously surged due to reports of pink bollworm infestations in the cotton belt of Haryana, India, which raised concerns about cotton crop yields. In the United States, the cotton projections for 2023/24 reveal higher starting stocks but lower production, exports, and ending stocks. Unexpectedly large warehouse stocks reported for July 31, 2023, contributed to increased beginning stocks for 2022/23. However, the production forecast for 2023/24 is 860,000 bales lower, with declines most prominent in the Southeast and Southwest regions. On the global stage, the 2023/24 cotton projections feature reduced beginning stocks, production, consumption, trade, and ending stocks compared to the previous month's estimates. India is anticipated to produce between 330 lakh to 340 lakh bales (each weighing 170 kg) of cotton in the upcoming 2023-2024 cotton season starting on October 1st, as stated by J. Thulasidharan, President of the Indian Cotton Federation. The central government has assessed the pre-sowing price forecast for cotton in the 2023-24 season, taking into account expectations of normal rainfall and an increase in crop area. In Rajkot, a key spot market for cotton, prices concluded at 28,864.7 Rupees, reflecting a -0.41% decline. From a technical perspective, the market witnessed long liquidation, with open interest remaining unchanged at 112. Cottoncandy currently finds support at 59,940, and if it drops below this level, it may test 59,790. Resistance is expected at 60,300, and a move above this level could push prices to test 60,510.

BUY COTTONCANDY NOV @ 60000 SL 59800 TGT 60300-60500. MCX

COCUDAKL

BUY COCUDAKL DEC @ 2730 SL 2680 TGT 2780-2830. NCDEX

KAPAS

BUY KAPAS APR @ 1640 SL 1620 TGT 1660-1680. NCDEX