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Cottoncandy

Cottoncandy prices fell by 0.22% to settle at Rs.53,330 per bale, pressured by bearish projections from the WASDE report. The report estimated global cotton production for 2024/25 to rise by 1.2 million bales, reaching 117.4 million bales, driven by increased output in India and Argentina. Additionally, U.S. cotton production was revised higher to 14.3 million bales. India, the world's largest cotton producer, is expected to see imports grow significantly to 25 lakh bales in 2024/25, a rise of 9.8 lakh bales compared to the previous season. However, kapas arrivals in India’s northern states have declined by 43% as of November 30, 2024, raising supply concerns. Despite higher global production, the downside in prices is limited due to strong cotton yarn demand from South Indian garment industries and robust export orders. The Cotton Association of India (CAI) has maintained its cotton pressing estimate at 302.25 lakh bales for the 2024/25 season, while consumption is pegged at 313 lakh bales. India’s closing stock is expected to drop to 26.44 lakh bales by September 2025, down from 30.19 lakh bales last year. Cottoncandy is witnessing long liquidation, with open interest dropping by 15.83% to 202 contracts. Prices are supported at Rs.53,150, with a break below potentially testing Rs.52,960. Resistance is seen at Rs.53,680, and a move above this level could lead to Rs.54,020.

BUY COTTONCANDY JAN @ 53300 SL 53100 TGT 53600-53800. MCX

COCUDAKL

BUY COCUDAKL FEB @ 2710 SL 2670 TGT 2750-2780. NCDEX

KAPAS

BUY KAPAS APR @ 1480 SL 1470 TGT 1495-1505. NCDEX

COTWASOIL

SELL COTWASOIL FEB @ 1215 SL 1225 TGT 1205-1195. NCDE