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Cottoncandy

Cottoncandy prices slipped by 0.22% to settle at Rs.54,360 amid weak demand in yarn markets and payment constraints. India's cotton production for 2024/25 is projected to decline by 7.4% to 30.2 million bales due to reduced acreage and crop damage from excessive rainfall. Similarly, USDA has revised India's cotton production forecast to 30.72 million bales, reducing ending stocks to 12.38 million bales. Meanwhile, global production estimates rose by over 200,000 bales, driven by increased output in China, Brazil, and Argentina, despite reductions in the U.S. and Spain. India's cotton acreage has dropped by 9% this year, falling to 11.29 million hectares from 12.69 million hectares a year earlier. Farmers in Gujarat, a key cotton-producing state, shifted focus to groundnuts for better returns. Reduced domestic production will likely increase imports to 2.5 million bales, up from 1.75 million bales last year, while exports are expected to decline to 1.8 million bales from 2.85 million. On the global front, U.S. cotton production was cut by 300,000 bales to 14.2 million due to hurricane damage, while mill use and exports were also reduced. However, global ending stocks for 2024/25 were slightly reduced to 76.3 million bales due to lower Chinese imports. The market is under long liquidation, as open interest dropped by 9.29% to 127 contracts. Prices are supported at Rs.53,600, with further downside potential to Rs.52,840. Resistance is seen at Rs.54,910, and a breakout above could test Rs.55,460.

BUY COTTONCANDY NOV @ 54200 SL 53800 TGT 54600-54900. MCX

COCUDAKL

BUY COCUDAKL DEC @ 2710 SL 2670 TGT 2750-2780. NCDEX

KAPAS

BUY KAPAS APR @ 1528 SL 1515 TGT 1542-1555. NCDEX