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COTTON

Cotton prices took a hit, settling at 58,100 due to concerns about reduced demand from China, with a decline of -0.89%. This dip was attributed to the USDA's October WASDE report, which reduced the U.S. cotton production forecast for 2023/24 to 12.8 million bales. The main reason for this cut was lower yields in Texas. Interestingly, Brazil is poised to overtake the U.S. in cotton production for the first time ever in 2023/24, and it's on the verge of surpassing U.S. cotton exports for the first time in over a century. Australia's cotton exports to China saw a significant surge in August, reaching 61,319 metric tons worth $130 million, the highest since July 2014. This was due to improving trade relations between the two nations. Meanwhile, the Cotton Association of India (CAI) raised its estimate for the 2022-23 cotton crop production to 31.8 million bales, higher than the government's estimate of 34.3 million bales. For the 2023-2024 cotton season in India, it's anticipated that cotton production will range from 33 to 34 million bales. However, unfavorable conditions led to a decrease in cotton cultivation in certain parts of Telangana. Cotton picking is set to pick up in the coming weeks. In the technical realm, the cotton market is currently experiencing long liquidation, with a drop in open interest by -3.48% and a price decrease of -520 rupees. Key support levels for Cottoncandy are at 57,840 and 57,570, while resistance is likely at 58,540, with the potential to test 58,970.

BUY COTTONCANDY NOV @ 58000 SL 57700 TGT 58300-58500. MCX

Cocudakl

SELL COCUDAKL DEC @ 2750 SL 2800 TGT 2680-2640. NCDEX

Kapas

SELL KAPAS APR @ 1620 SL 1640 TGT 1600-1580. NCDEX