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Cotton

Cottoncandy prices fell by 0.68% to settle at Rs.55,280, pressured by weaker export data. The USDA reported a 47% decline in weekly export sales of upland cotton, reflecting subdued global demand. In contrast, domestic cotton yarn prices in South India have risen due to stronger garment industry demand and robust export orders. India’s cotton production for the 2024/25 season is projected to decline by 7.4% year-on-year to 30.2 million bales, primarily due to reduced acreage and crop damage caused by excessive rainfall. The USDA revised India's production estimate to 30.72 million bales while lowering ending stocks to 12.38 million bales. India’s cotton imports are expected to rise to 2.5 million bales in 2024/25, up from 1.75 million bales a year ago, while exports may fall to 1.8 million bales, compared to 2.85 million bales in 2023/24. The reduction in acreage, particularly in Gujarat, and competition from groundnuts with better returns have significantly impacted production. Globally, cotton production is expected to rise, with increases in China, Brazil, and Argentina offsetting reductions in the U.S. and Spain. The USDA lowered U.S. cotton production to 14.2 million bales due to Hurricane Helene, with exports also reduced to 11.5 million bales. Technically, the market experienced fresh selling as open interest increased by 3.13% to 297 contracts. Cottoncandy is supported at Rs.55,260, with a potential test of Rs.55,230 if it breaks below. Resistance is seen at Rs.55,310, and a move above could lead to testing Rs.55,330.

BUY COTTONCANDY JAN @ 55000 SL 54700 TGT 55400-55700. MCX

Cocudakl

BUY COCUDAKL JAN @ 2710 SL 2680 TGT 2740-2770. NCDEX

Kapas

BUY KAPAS APR @ 1520 SL 1505 TGT 1535-1545. NCDEX