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CottonCandy

Cotton candy prices settled up by 0.11% at 56,810, supported by the USDA's revision of India's cotton production forecast for the 2024-25 season to 30.72 million bales, down from previous estimates, due to crop damage from excessive rains and pest issues. The reduction in India's ending stocks to 12.38 million bales added further support. However, upside movement remains limited due to moderate demand and weak export activity, especially to key markets like Bangladesh. India’s cotton output for the 2024-25 season is expected to remain at similar levels to last year, despite a 9% reduction in acreage, as higher yields from timely rains and lower pest incidence are anticipated to balance the lower planting area. Cotton exports for the 2023-24 season are estimated at 80% of the total, reaching 28 lakh bales, driven by strong demand from countries such as Bangladesh and Vietnam. On the global front, the U.S. cotton balance sheet for 2024/25 has been revised downward, with lower production, exports, and ending stocks. U.S. production is forecast at 14.5 million bales, down 600,000 bales from August due to reduced yields in the Southwest. Global cotton production and consumption have also been lowered, particularly in countries like the U.S., India, and Pakistan, offset by a larger crop in China. World ending stocks are reduced by 1.1 million bales to 76.5 million. Technically, the market is experiencing fresh buying, with open interest rising by 3.2% to 129 contracts, while prices increased by 60 rupees. Cotton candy is currently supported at 56,460, with a potential test of 56,110 if breached. Resistance is seen at 57,310, and a break above this level could push prices toward 57,810.

BUY COTTONCANDY NOV @ 56600 SL 56200 TGT 57000-57200. MCX

Cocudakl

SELL COCUDAKL DEC @ 2945 SL 2985 TGT 2900-2860. NCDEX

Kapas

BUY KAPAS APR @ 1565 SL 1550 TGT 1580-1590. NCDEX