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COTTON

Cottoncandy prices rose by 0.43% to close at Rs.55,630, supported by firm demand from garment industries and robust export orders. India's cotton production for 2024/25 is projected to decline by 7.4% to 30.2 million bales due to reduced acreage and crop damage caused by excessive rainfall and pests. The USDA has further lowered India’s production forecast to 30.72 million bales, with ending stocks reduced to 12.38 million bales. This decline in production will likely drive imports up to 2.5 million bales from 1.75 million last year, while exports are expected to drop to 1.8 million bales from 2.85 million. Globally, cotton production estimates for 2024/25 have been raised by over 200,000 bales due to higher output in China, Brazil, and Argentina, despite reductions in the U.S. and Spain. The U.S. cotton production is forecasted at 14.2 million bales, down 300,000 due to Hurricane Helene. Domestic mill use and exports have also been reduced, while ending stocks rose slightly to 4.1 million bales. Global ending stocks for 2024/25 are projected at 76.3 million bales, slightly lower than the previous month, as world trade shrinks by over 500,000 bales due to reduced Chinese imports. The market saw short covering, with no change in open interest at 288 contracts. Prices are supported at Rs.55,470, with a drop below testing Rs.55,310. Resistance is pegged at Rs.55,820, and a breakout above this could drive prices toward Rs.56,010.

BUY COTTONCANDY JAN @ 55300 SL 55000 TGT 55600-55800. MCX

Cocudakl

BUY COCUDAKL DEC @ 2670 SL 2630 TGT 2720-2750. NCDEX

Kapas

BUY KAPAS APR @ 1520 SL 1510 TGT 1530-1540. NCDEX