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Cottoncandy

Cottoncandy prices rose by 0.2% to Rs.54,700, driven by increasing demand from garment industries and robust export orders. Cotton yarn prices in southern India also saw an uptick, reflecting the bullish sentiment. However, a 43% decline in kapas arrivals in Punjab, Haryana, and Rajasthan by November 30 compared to last year has raised concerns of raw material shortages across the supply chain. Farmers are reportedly holding back produce, anticipating higher prices, further tightening supplies. Global cotton production for 2024-25 is forecast to rise by 1.2 million bales to 117.4 million, supported by higher outputs in India and Argentina. Yet, domestic cotton imports for the current crop year are estimated at 25 lakh bales, up 9.8 lakh bales from last year, reflecting supply gaps. By November 30, Indian ports received around 9 lakh bales. The projected closing stock for 2024-25 is 26.44 lakh bales, significantly lower than the 30.19 lakh bales from the previous year, underscoring supply constraints. On the global front, U.S. cotton production was revised higher to 14.3 million bales, while world production estimates also saw a 1.2 million bale increase due to larger crops in India, Argentina, and Brazil. However, consumption is rising, particularly in India, Pakistan, and Vietnam, driving a marginal increase in global trade. The market witnessed fresh buying with a 0.47% increase in open interest, settling at 424 contracts as prices gained Rs.110. Cottoncandy finds support at Rs.54,580, with further downside testing at Rs.54,450. Resistance is seen at Rs.54,860, and a breakout above could push prices to Rs.55,010.

BUY COTTONCANDY JAN @ 54700 SL 5400 TGT 55000-55300. MCX

Cocudakl

SELL COCUDAKL FEB @ 2820 SL 2860 TGT 2780-2750. NCDEX

Kapas

BUY KAPAS APR @ 1520 SL 1230 TGT 1505-1495. NCDEX

Cotwasoil

BUY COTWASOIL FEB @ 1245 SL 1235 TGT 1255-1265. NCDEX