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Cottoncandy

Cottoncandy prices edged up slightly by 0.04% to 56,070 as the yarn market grapples with weak demand and constrained payment flows. India’s cotton production for 2024/25 is expected to decrease by 7.4% year-on-year to 30.2 million bales due to reduced acreage and crop damage from excessive rainfall. This outlook aligns with the USDA’s recent forecast revision, which lowered India’s production to 30.72 million bales and reduced ending stocks to 12.38 million bales due to adverse weather and pest pressures. Meanwhile, global cotton production is anticipated to rise, with increased outputs in China, Brazil, and Argentina offsetting reductions in the U.S. and Spain. India's cotton acreage for the current kharif season has decreased by 9% to 11.29 million hectares as farmers in key cotton-growing regions like Gujarat shifted to groundnuts, driven by higher returns. Consequently, India’s cotton exports are projected to decline to 1.8 million bales from last year’s 2.85 million, while imports may rise to 2.5 million bales, supporting global prices. On the U.S. front, the USDA’s October report reduced the U.S. cotton production estimate to 14.2 million bales, down 300,000 bales, due to hurricane-related damages. The agency also lowered mill use and exports amid weaker global import demand. Global ending stocks for the 2024/25 season are revised down slightly to 76.3 million bales. In Rajkot’s major spot market, cotton prices slipped marginally to 26,296.6 rupees, reflecting subdued spot market activity. Technically, the Cottoncandy market shows short covering, with open interest unchanged at 168 contracts and prices gaining 20 rupees. Current support is at 56,020, with a further downside potential to test 55,960 if breached. Resistance is at 56,120, and breaking above this level could see prices testing 56,160.

BUY COTTONCANDY NOV @ 55800 SL 55500 TGT 56200-56600. MCX

COCUDAKL

BUY COCUDAKL DEC @ 2950 SL 2900 TGT 3000-3040. NCDEX

KAPAS

BUY KAPAS APR @ 1555 SL 1542 TGT 1570-1580. NCDEX