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Cotton

Cottoncandy prices experienced a marginal decline of -0.45%, settling at 56960, attributed to profit booking after recent support. India's cotton production for 2023/24 is expected to decrease by 7.5% to 29.5 million bales due to lower planted areas and the impact of El Niño weather conditions, as reported by the Cotton Association of India (CAI). Import estimates suggest a potential increase to 2.2 million bales, compared to the previous year's 1.25 million bales. The U.S. cotton balance sheet for 2023/24 indicates slightly lower consumption but higher production and ending stocks. Higher production at 13.1 million bales, with Texas offsetting lower production elsewhere, is noted. Domestic mill use is slightly lower, while exports remain unchanged, resulting in higher ending stocks at 3.2 million bales. Globally, the 2023/24 cotton balance sheet shows lower consumption but higher production and stocks. Beginning stocks increased by 200,000 bales, primarily due to a 300,000-bale rise in India's 2022/23 production. CAI's final estimate for the 2022-23 cotton crop production stands at 31.8 million bales, slightly higher than the initial estimates. However, this differs from the government's estimate of 34.3 million bales. In north Maharashtra, cotton production is anticipated to decline by 25% due to insufficient rainfall, impacting about 10 lakh hectares of land. The normal annual cotton production in the region is around 20 lakh tonnes. Rajkot, a major spot market, witnessed a price drop of -0.31%, ending at 27188.4 Rupees. Technically, the market is undergoing long liquidation, with a -7.29% drop in open interest. Support is identified at 56760, with a potential test of 56550, while resistance is anticipated at 57220, with a possible test of 57470.

BUY COTTONCANDY NOV @ 56600 SL 56400 TGT 57000-57200. MCX

Cocudakl

SELL COCUDAKL DEC @ 2950 SL 3000 TGT 2900-2860. NCDEX

Kapas

SELL KAPAS APR @ 1590 SL 1605 TGT 1570-1560. NCDEX