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Cotton Candy

Cottoncandy prices declined by -0.18% to close at Rs.54,760 per bale, pressured by increased global production estimates for the 2024/25 cotton year, projected at 117.4 million bales, up by 1.2 million bales. The rise in production is led by India and Argentina, despite India's domestic cotton output expected to fall by 7.4% to 30.2 million bales due to reduced planting areas and weather-related crop damage. Farmers in Gujarat shifted to groundnuts for better profitability, reducing cotton acreage. Additionally, cotton arrivals in the northern states of Punjab, Haryana, and Rajasthan have dropped 43% year-on-year till November 30, causing supply chain disruptions. India’s imports are forecast to increase to 2.5 million bales from 1.75 million bales a year ago, while exports are expected to decline to 1.8 million bales from 2.85 million bales. Meanwhile, steady domestic demand of 31.3 million bales is anticipated. On the global front, the U.S. revised its cotton production estimate higher to 14.3 million bales, contributing to increased world production, consumption, and ending stocks. However, India’s lower carryover stocks from 2023/24 highlight tightening supplies. The market experienced fresh selling pressure, with open interest increasing by 2.47% to 332. Prices fell Rs. 100, indicating bearish sentiment. Cottoncandy is currently supported at Rs. 54,640, with further downside possible at Rs. 54,510. On the upside, resistance is placed at Rs. 54,860, and a break above this level could drive prices toward Rs. 54,950, reflecting a potential recovery in sentiment.

BUY COTTONCANDY JAN @ 54600 SL 54300 TGT 54900-55200. MCX

Cocudakl

BUY COCUDAKL JAN @ 2640 SL 2600 TGT 2680-2720. NCDEX

Kapas

BUY KAPAS APR @ 1495 SL 1480 TGT 1515-1525. NCDEX