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Cotton Candy

Cottoncandy prices fell by 0.64%, settling at Rs.54,180, amid expectations of higher global production for the 2024-25 cotton year. Global output is projected to rise by 1.2 million bales, reaching 117.4 million bales, driven by larger crops in India and Argentina. However, the supply chain in India faces challenges, with North Indian states witnessing a 43% decline in kapas arrivals till November 30, 2024, compared to last year. Farmers are holding back their produce in hopes of higher prices, while ginners and spinners, especially in Punjab, face raw material shortages. India's cotton imports are estimated to increase significantly by 9.8 lakh bales to 25 lakh bales during the 2024-25 season, with 9 lakh bales already arriving at Indian ports by the end of November. The Cotton Association of India (CAI) has maintained its pressing estimate at 302.25 lakh bales and projected a closing stock of 26.44 lakh bales for September 2025, down from 30.19 lakh bales last year. On the global front, U.S. cotton production is revised up to 14.3 million bales, while world consumption is raised by 570,000 bales due to increased demand in India, Pakistan, and Vietnam. Ending stocks globally are projected higher, supported by increases in Argentina, the U.S., and Pakistan. Immediate support is seen at Rs.54,090, with further downside to Rs.53,990. Resistance is expected at Rs.54,300, and a breakout could test Rs.54,410.

BUY COTTONCANDY JAN @ 54400 SL 54100 TGT 54800-55100. MCX

Cocudakl

BUY COCUDAKL JAN @ 2640 SL 2600 TGT 2680-2720. NCDEX

Kapas

BUY KAPAS APR @ 1495 SL 1480 TGT 1515-1525. NCDEX