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Cotton

Cotton Candy prices dropped by 0.16% to settle at 56,750 due to moderate demand and weak export activity, particularly to Bangladesh. However, the downside was limited by hopes of a demand revival from China after the implementation of stimulus measures and concerns over potential crop damage in key growing areas, exacerbated by Hurricane Helene. The USDA has lowered India's cotton production forecast for the 2024-25 season to 30.72 million bales, with ending stocks reduced to 12.38 million bales due to crop damage from excessive rains and pest issues. Acreage in the current kharif cropping season has also declined by around 9% to 110.49 lakh hectares, compared to 121.24 lakh hectares in the previous year. Cotton exports for the 2023-24 crop year are estimated to reach 28 lakh bales, an increase from the previous year’s 15.50 lakh bales, driven by strong demand from countries like Bangladesh and Vietnam. However, imports of cotton have also risen to 16.40 lakh bales, up from 12.50 lakh bales last year. As per the Cotton Association of India (CAI), closing stocks as of September 30, 2024, are expected to be 23.32 lakh bales, down from 28.90 lakh bales a year ago. The U.S. cotton balance sheet for 2024/25 shows lower production and ending stocks, primarily due to reduced yields in key regions. Technically, the cotton market is witnessing fresh selling, with open interest increasing by 0.81% to 125 contracts. Prices fell by 90, with support at 56,560, and further declines could test 56,370. Resistance is expected at 56,880, and a move above this level could see prices testing 57,010.

BUY COTTONCANDY NOV @ 56500 SL 56300 TGT 56900-57200. MCX

Cocudakl

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

Kapas

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