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Cotton Candy

Cotton candy futures declined by 0.3%, settling at Rs.54,020, weighed down by projections of increased global cotton production for 2024-25, expected to rise by 1.2 million bales to 117.4 million bales. This growth is driven by higher output in India and Argentina. In contrast, the northern Indian states of Punjab, Haryana, and Rajasthan have reported a 43% decline in kapas arrivals compared to the previous year, exacerbating raw material shortages for ginners and spinners. Farmers are holding back produce, anticipating higher prices, which has disrupted the supply chain. Cotton imports into India for 2024-25 are estimated at 25 lakh bales, a sharp increase from the 15.20 lakh bales of the previous year. By November 30, approximately 9 lakh bales had arrived at Indian ports. Closing stocks for September 2025 are projected at 26.44 lakh bales, down from 30.19 lakh bales in the prior year. Globally, U.S. cotton production for 2024/25 has been revised upwards to 14.3 million bales, while world production is projected at 117.4 million bales, with notable increases in India, Argentina, and Brazil. Consumption is expected to rise by 570,000 bales, driven by higher demand in India, Pakistan, and Vietnam. The market experienced long liquidation, with open interest declining 0.58% to 341 contracts as prices dropped by Rs.160. Cotton candy has immediate support at Rs.53,690, with further downside potential to Rs.53,370. Resistance is seen at Rs.54,240, and a break above could test Rs.54,470.

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