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Cottoncandy:

Cottoncandy prices recorded a gain of 0.76%, settling at 55,660, driven by low-level buying after facing pressure due to a reduction in world consumption forecasts for the 2023/24 season. The forecasted decrease of 1.3 million bales is attributed to reductions in consumption expectations for India, Indonesia, Pakistan, Uzbekistan, and Turkey. However, the market saw support from an increase in world ending stocks for 2023/24, up by 2.0 million bales, driven by higher beginning stocks, production, and lower consumption. The Cotton Association of India (CAI) maintained its estimates for domestic cotton consumption during the 2023-24 season at 311 lakh bales. The pressing estimates for the same season were held steady at 294.10 lakh bales. Brazil witnessed historic high cotton production in the 2022-23 season, driven by expanded cultivation and productivity. Despite increased global supply, sluggish demand and economic challenges led to bloated inventories and reduced cotton prices worldwide. Reports of a decline in pink bollworm infestation in the Indian cotton crop provided some relief. The infestation reduced from 30.62% during 2017-18 to 10.80% in 2022-23. In November, Brazilian cotton shipments increased by 12% compared to October 2023 but decreased by 5.5% compared to November 2022. From a technical perspective, the market is experiencing short covering, with open interest remaining unchanged at 198. Cottoncandy is finding support at 55,300, and a breach below this level could test 54,950. Resistance is likely at 55,900, with a potential upward movement testing 56,150.

BUY COTTONCANDY JAN @ 55400 SL 55200 TGT 55700-55900. MCX

Cocudakl:

BUY COCUDAKL FEB @ 2640 SL 2600 TGT 2690-2730. NCDEX

Kapas:

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

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