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Cotton

Cottoncandy, the cotton market, experienced a slight uptick of 0.03%, closing at 58,340 due to concerning factors in the cotton industry. India is anticipating a 7.5% drop in cotton production for the 2023/24 season, attributed to decreased planting and El Nino's adverse impact on productivity. This has led to predictions of increased cotton imports in India, reaching 2.2 million bales. The USDA's October WASDE report also painted a gloomy picture, reducing the U.S. cotton production estimate for 2023/24 to 12.8 million bales, citing lower yields in Texas. In a significant development, Brazil is poised to outproduce the United States for the first time in cotton production, and it's on the brink of surpassing U.S. cotton exports, a historic shift. Australia capitalized on improved trade relations with China, with cotton exports surging to 61,319 metric tons worth $130 million in August, the highest since 2014. The Cotton Association of India (CAI) released its final estimate for the 2022-23 season, slightly higher at 31.8 million bales, contrasting the government's estimate of 34.3 million bales. Looking ahead, India is gearing up for the 2023-2024 cotton season with an expected production of 33-34 million bales. In Rajkot, a major cotton spot market, prices dipped by -0.56% to close at 27,357 Rupees. From a technical perspective, the market saw short-covering, with open interest remaining unchanged at 107, while prices increased by 20 rupees. Cottoncandy is currently finding support at 58,060, with potential testing of 57,790. On the upside, resistance may emerge at 58,600, and if breached, prices could test 58,870.

BUY COTTONCANDY JAN @ 58400 SL 58100 TGT 58800-59000. MCX

Cocudakl

SELL COCUDAKL DEC @ 2970 SL 3020 TGT 2900-2850. NCDEX

Kapas

SELL KAPAS APR @ 1630 SL 1645 TGT 1610-1600. NCDEX