IGI Logo

Cottoncandy

Cottoncandy prices rose by 0.45% to settle at 55,900, supported by a downward revision in India’s cotton production forecast for the 2024-25 season. The USDA reduced India's production estimate to 30.72 million bales and ending stocks to 12.38 million bales due to crop damage from excessive rainfall and pest issues. Global cotton production estimates were raised by over 200,000 bales, driven by increased output in China, Brazil, and Argentina, which offset declines in the U.S. and Spain. India’s cotton acreage has decreased by approximately 9%, standing at 110.49 lakh hectares compared to 121.24 lakh hectares last year. The CAI projected that India’s cotton production would fall by 7.4% to 30.2 million bales for 2024/25, primarily due to reduced planted area. This drop in production is expected to lower exports to 1.8 million bales from 2.85 million bales last year and increase imports to 2.5 million bales from 1.75 million previously. The western state of Gujarat, a significant cotton producer, has shifted acreage to groundnuts, offering higher returns. The U.S. cotton balance sheet for 2024/25 shows lower production, mill use, and exports due to hurricane damage, with production reduced by over 300,000 bales to 14.2 million. Domestic mill use and exports were also lowered, while ending stocks increased by 100,000 bales to 4.1 million. Globally, cotton production rose, with increased output in key countries offsetting U.S. and Spain's reductions. World ending stocks were slightly reduced to 76.3 million bales. Technically, the market is under fresh buying, with open interest up by 2.58% to 159 contracts and prices gaining 250 rupees. Cottoncandy has support at 55,900, with a test at the same level, while resistance is likely at 55,900, with potential moves toward 55,900

BUY COTTONCANDY NOV @ 55800 SL 55500 TGT 56200-56600. MCX

Cocudakl

BUY COCUDAKL DEC @ 2920 SL 2880 TGT 2960-3000. NCDEX

Kapas

BUY KAPAS APR @ 1550 SL 1535 TGT 1565-1575. NCDEX