IGI Logo

Cottoncandy 

Cottoncandy prices declined by 0.37%, settling at 56,910 amid weak demand in the yarn markets and payment constraints. The USDA recently raised global cotton production estimates by over 200,000 bales, with increases expected in China, Brazil, and Argentina, offsetting reductions in the U.S. and Spain. However, the USDA also revised India's cotton production forecast for the 2024-25 season down to 30.72 million bales due to crop damage from excessive rains and pest infestations. Despite this, upside potential remains limited due to moderate demand and weak export activity, particularly to Bangladesh. Cotton acreage for the current kharif season is down by about 9% at 110.49 lakh hectares compared to last year. According to the Cotton Association of India (CAI), closing stocks for the 2023-24 season are estimated at 30.19 lakh bales, marginally higher than last year’s 28.90 lakh bales. Cotton consumption for the season was slightly higher at 313 lakh bales, while pressing estimates also increased to 325.29 lakh bales. Additionally, India’s cotton imports rose to 17.50 lakh bales in 2023-24, while exports grew 84% year-on-year, driven by demand from countries like Bangladesh and Vietnam. In the U.S., cotton production was reduced by 300,000 bales due to hurricane damage, with exports and mill use also lowered. Technically, the market is experiencing fresh selling pressure, with a 1.54% increase in open interest to 132 contracts. Prices are currently supported at 56,630, with a potential test of 56,360 if this level is breached. On the upside, resistance is expected at 57,300, and a move above this level could push prices towards 57,700.

BUY COTTONCANDY NOV @ 56500 SL 56200 TGT 57000-57200. MCX

Cocudakl

BUY COCUDAKL DEC @ 2980 SL 2940 TGT 3030-3060. NCDEX

Kapas

BUY KAPAS APR @ 1570 SL 1555 TGT 1585-1595. NCDEX