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COTTONCANDY 

Cotton prices, represented by Cottoncandy, closed higher by 0.53% at 57300, as traders grappled with concerns over limited supplies in the near term. ICE data revealed a significant drop in certified cotton stocks, deliverable against contracts, from 87,770 bales on December 1st to 6,325 bales on December 5th. This decline in stocks heightened market apprehensions. Brazilian cotton shipments in November reached 253.71 thousand tons, reflecting a 12% increase compared to October but a 5.5% decrease compared to November 2022. The International Cotton Advisory Committee (ICAC) projected that global cotton production is set to surpass consumption for the second consecutive year. Global cotton lint production is expected to grow by 3.25% year-on-year to 25.4 million metric tons in the 2023-2024 season, while consumption is forecasted to marginally decline to 23.4 million metric tons. In contrast, sluggish demand, reflected in a 5-week low of global cotton bookings for the last week of November, exerted downward pressure on cotton futures. The Cotton Association of India (CAI) revised down its cotton production estimate for the current 2023/2024 season to 29.4 million bales. Factors include damage in Haryana from pink bollworm infestation and farmers uprooting plants. North Maharashtra is expected to see a significant 25% decline in cotton production due to inadequate rainfall. Technically, the market is under fresh buying, with open interest gaining by 2.4% to settle at 171. Cottoncandy is finding support at 57060, with potential downside testing at 56830 levels. Resistance is likely at 57660, and a move above could push prices to 58030.

BUY COTTONCANDY JAN @ 57100 SL 56900 TGT 57400-57600. MCX

COCUDAKL

SELL COCUDAKL JAN @ 2880 SL 2930 TGT 2820-2770. NCDEX

KAPAS

BUY KAPAS APR @ 1585 SL 1570 TGT 1600-1610. NCDEX