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Cottoncandy

Cottoncandy prices dipped by 0.14% to 55,930, driven by weak demand in yarn markets and payment delays. The USDA recently adjusted India's cotton production forecast for the 2024-25 season down to 30.72 million bales, with ending stocks lowered to 12.38 million bales due to crop damage from excessive rains and pest issues. Globally, USDA raised production estimates by 200,000 bales with increases in China, Brazil, and Argentina offsetting declines in the US and Spain. In India, cotton acreage has fallen by 9% to 110.49 lakh hectares from 121.24 lakh hectares last year, as farmers in Gujarat, India’s largest cotton-producing state, shifted to groundnuts, which provided better returns. The Cotton Association of India (CAI) forecasts a 7.4% decline in production to 30.2 million bales, with imports expected to increase to 2.5 million bales, up from 1.75 million last year, while exports are likely to drop to 1.8 million bales from 2.85 million. The US cotton balance sheet for 2024/25 shows a reduction in production, mill use, and exports due to Hurricane Helene’s damage, with ending stocks revised upwards to 4.1 million bales. On the global front, world production rose by over 200,000 bales, though weaker import demand, particularly from China, led to a reduction in world trade by 500,000 bales. Technically, Cottoncandy remains under selling pressure as open interest gained by 0.68% to 149, with prices declining by 80 rupees. Currently, support stands at 55,820, with further downside potential to 55,710 if this level breaks. Resistance is seen at 56,020, and a move above this could test the 56,110 level.

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

Cocudakl

BUY COCUDAKL DEC @ 2950 SL 2900 TGT 3000-3040. NCDEX

Kapas

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