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Cottoncandy 

Cotton prices, represented as Cottoncandy, settled up by 0.25% at 57000 as traders grappled with concerns about limited supplies in the near term. The reduction in certified cotton stocks, deliverable against the contract, to 6,325 bales on December 5th from their recent peak on December 1st indicates a tightening supply situation. Brazilian cotton shipments increased in November, but global concerns persist as the International Cotton Advisory Committee (ICAC) projects that global cotton production may surpass consumption for the second consecutive year. The Cotton Association of India (CAI) revised down its cotton production estimate for the current season to 29.4 million bales, citing damage from pink bollworm infestation in Haryana and significant rainfall deficit affecting cotton production in north Maharashtra. The USDA's November report also raised global ending stocks by 1.6 million bales. On the demand side, sluggish global cotton bookings and a 5-week low in Export Sales for the last week of November contributed to downward pressure on cotton futures. The global cotton balance sheet for the 2023/24 season shows slightly lower consumption but higher production and ending stocks, reflecting uncertainties in the market. In the technical realm, the market is currently witnessing short covering, with a -1.18% drop in open interest to settle at 167. With prices up by 140 rupees, Cottoncandy is finding support at 56580, and a breach below could test 56170. Resistance is expected at 57320, with a potential breakthrough leading to a test of 57650.

BUY COTTONCANDY JAN @ 56800 SL 56500 TGT 57200-57400. MCX

COCUDAKL

SELL COCUDAKL DEC @ 2970 SL 3000 TGT 2930-2900. NCDEX

KAPAS

BUY KAPAS APR @ 1560 SL 1545 TGT 1580-590. NCDEX