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Cottoncandy

Cottoncandy prices rose by 1.71% to settle at ?58,740, driven by concerns over reduced production forecasts and lower ending stocks for the 2024-25 season. The USDA lowered India's cotton production forecast to 30.72 million bales, attributing the reduction to crop damage from excessive rains and pest issues. Acreage under cotton has also decreased by around 9% in the current kharif season, compared to the same period last year. However, the upside is seen as limited with the arrival of new raw cotton supplies in mandis, especially in Punjab. On the export front, India’s cotton exports for the 2023-24 crop year are estimated to rise by 80%, reaching 28 lakh bales, driven by higher demand from countries like Bangladesh and Vietnam. In contrast, cotton imports increased to 16.4 lakh bales from 12.5 lakh bales the previous year, as per the Cotton Association of India (CAI). Closing stocks are projected to decline to 23.32 lakh bales by the end of September 2024, compared to 28.9 lakh bales last year. Globally, the U.S. cotton balance sheet shows lower production and exports for 2024/25, with a production forecast of 14.5 million bales, down 600,000 bales from August due to reduced yields. World cotton production, consumption, and trade have also been revised lower, primarily due to reduced output in the U.S., India, and Pakistan. Technically, the market saw fresh buying, with a 5.41% rise in open interest to 78 contracts, while prices increased by Rs.990. Support is seen at Rs.58,170, and a break below could test Rs.57,600. Resistance is expected at Rs.59,150, with a potential move toward Rs.59,560 if breached.

BUY COTTONCANDY NOV @ 58500 SL 58200 TGT 58800-59000. MCX

COCUDAKL

SELL COCUDAKL DEC @ 3040 SL 3090 TGT 2980-2920. NCDEX

KAPAS

SELL KAPAS APR @ 1625 SL 1640 TGT 1610-1600. NCDEX