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Cottoncandy

Cottoncandy prices exhibited a modest recovery, closing up by 0.45% at 57500, following a recent drop attributed to a forecasted decrease in world consumption for the 2023/24 season. The reduction in consumption is primarily driven by lower estimates for India, Indonesia, Pakistan, Uzbekistan, and Turkey. Additionally, world ending stocks for 2023/24 are projected to be 2.0 million bales higher due to increased beginning stocks, production, and lower consumption. The Cotton Association of India (CAI) maintained its estimates for domestic cotton consumption in the 2023-24 season at 311 lakh bales. However, it retained pressing estimates at 294.10 lakh bales, emphasizing stability in the cotton supply till the end of the season. Despite Brazil achieving a historic high in cotton production in the 2022-23 season, global cotton prices experienced pressure due to sluggish demand under unfavorable economic conditions. Reports indicate a decline in pink bollworm infestation in Indian cotton crops, falling from 30.62% in 2017-18 to 10.80% in 2022-23. However, the infestation remains present in cotton-growing areas across the country. In the global market, Brazilian cotton shipments increased by 12% in November compared to October but witnessed a 5.5% decline year-on-year. The International Cotton Advisory Committee (ICAC) projects that global cotton production will surpass consumption for the second consecutive year. Technically, the market is experiencing fresh buying, with a substantial 51.72% increase in open interest, settling at 176, while prices rose by 260 rupees. Support is identified at 57020, with a potential test of 56550. Resistance is likely at 57780, and a move above could push prices towards 58070.

BUY COTTONCANDY MAR @ 57300 SL 57000 TGT 57600-57800. MCX

COCUDAKL

BUY COCUDAKL FEB @ 2580 SL 2540 TGT 2630-2660. NCDEX

KAPAS

BUY KAPAS APR @ 1525 SL 1510 TGT 1540-1550. NCDEX