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Cottoncandy

Cottoncandy prices settled down by -0.72% at 56,840 amid moderate demand and weak export activity, particularly to Bangladesh. However, the downside was limited due to hopes for a revival in demand from China following recent stimulus measures and concerns over potential crop damage in key growing areas from Hurricane Helene. The USDA has lowered India’s cotton production forecast for the 2024-25 season to 30.72 million bales, with ending stocks reduced to 12.38 million bales due to crop damage from excessive rains and pest issues. Additionally, cotton acreage in the current Kharif season has dropped by 9% compared to last year. India’s cotton exports for the 2023-24 crop year are estimated to be 80% higher at 28 lakh bales, driven by demand from countries like Bangladesh and Vietnam. The Cotton Association of India (CAI) estimates that exports till August reached 27 lakh bales, while imports increased to 16.4 lakh bales from 12.5 lakh bales the previous year. The CAI also projects closing stocks of 23.32 lakh bales as of September 30, 2024, down from 28.9 lakh bales a year earlier. The U.S. cotton balance sheet for 2024/25 also shows lower production, exports, and ending stocks due to reduced yields in the Southwest. On the global front, the cotton balance sheet for 2024/25 sees reductions in production, consumption, trade, and ending stocks, with world production lowered by 1.2 million bales due to smaller crops in the U.S., India, and Pakistan. Technically, the market is experiencing fresh selling with open interest rising by 0.81% to 124 contracts. Prices declined by 410, with support now seen at 56,590, and a break below this level could test 56,340. Resistance is expected at 57,000, and a move above this could push prices to 57,160.

BUY COTTONCANDY NOV @ 56800 SL 56400 TGT 57200-57600. MCX

Cocudakl

SELL COCUDAKL DEC @ 2945 SL 2985 TGT 2900-2860. NCDEX

KAPAS

SELL KAPAS APR @ 1590 SL 1605 TGT 1575-1565. NCDEX

COTWASOIL

SELL COTWASOIL DEC @ 1190 SL 1200 TGT 1180-1170. NCDEX