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Cottoncandy

Cotton prices, symbolized by "Cottoncandy," registered a gain of 0.46%, settling at 56380, following the Cotton Association of India (CAI) maintaining its pressing estimate for the 2023-24 season at 294.10 lakh bales of 170 kg each. The CAI President, Atul S Ganatra, stated that the total supply until the end of November was estimated at 92.05 lakh bales, consisting of market arrivals of 60.15 lakh bales, imports of 3 lakh bales, and opening stocks of 28.90 lakh bales. Reports indicate a decline in the infestation of pink bollworm in the cotton crop, reducing from 30.62% during 2017-18 to 10.80% in 2022-23. The infestation has decreased across all cotton-growing areas in the north, central, and south zones of the country. Certified cotton stocks available for delivery against contracts dropped significantly from their recent peak on December 1st, standing at 6,325 bales on December 5th. The International Cotton Advisory Committee projects that global cotton production will outpace consumption for the second consecutive year, with global cotton lint production expected to grow by 3.25% to 25.4 million metric tons in the 2023-2024 season. In the U.S., the cotton balance sheet for the 2023/24 season reflects slightly lower consumption but higher production and ending stocks. Globally, beginning stocks are higher, largely due to a 300,000-bale increase in India's 2022/23 production. Technically, the market is undergoing short covering, with a -3.94% drop in open interest, settling at 195. Cottoncandy is currently finding support at 56200, and a breach below this level may lead to a test of 56010. On the upside, resistance is likely at 56580, and a move above could push prices to test 56770.

BUY COTTONCANDY JAN @ 56000 SL 55800 TGT 56300-56500. MCX

Cocudakl

SELL COCUDAKL JAN @ 2800 SL 2840 TGT 2750-2720. NCDEX

Kapas

BUY KAPAS APR @ 1550 SL 1540 TGT 1570-1590. NCDEX