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Cotton candy

Cotton candy prices settled down by -0.17% at Rs.53,930 as the global cotton production for the cotton year (CY) 2024-25 is projected to rise by over 1.2 million bales to 117.4 million bales. This increase is driven by higher production in India and Argentina. In India, cotton yarn prices have increased due to rising demand from garment industries and robust export orders. However, the arrival of kapas (unginned cotton) in the key north Indian states — Punjab, Haryana, and Rajasthan — has witnessed a sharp decline of 43% till November 30 compared to the same period last year. This sharp reduction in arrivals has caused concern across the supply chain, with farmers holding back their produce in anticipation of higher prices, while ginners and spinners are facing raw material shortages. Cotton Association of India (CAI) has maintained the cotton consumption estimate for 2024-25 at 313 lakh bales of 170 kgs each. In the U.S., the December estimate for all-cotton production has been revised higher to approximately 14.3 million bales, an increase of 64,000 from last month. The 2024/25 world cotton balance sheet has seen an increase in production, consumption, and ending stocks, while beginning stocks are reduced. Technically, the market is under fresh selling as open interest has increased by 1.17% to settle at 345, while prices have decreased by Rs.90. Support levels are seen at Rs.53,770, with further downside potential to Rs.53,600. Resistance is expected around Rs.54,050, and a breakout could push prices towards Rs.54,160.

SELL COTTONCANDY JAN @ 53600 SL 56300 TGT 54000-54300. MCX

Cocudakl

BUY COCUDAKL JAN @ 2620 SL 2580 TGT 2660-2700. NCDEX

Kapas

BUY KAPAS APR @ 1475 SL 1465 TGT 1490-1500. NCDEX