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COTTONCANDY

Cotton prices, represented by Cottoncandy, saw a marginal increase of 0.11%, settling at 57160. The uptick is attributed to the Cotton Association of India (CAI) revising down its cotton production estimate for the current 2023/2024 season to 29.4 million bales. The revision cited damage in Haryana caused by pink bollworm infestation and farmers uprooting plants. Additionally, a substantial 25% decline in cotton production is anticipated in north Maharashtra due to inadequate rainfall. The USDA's November World Agricultural Supply and Demand Estimates report presented a contrasting view, with an increase in the anticipated U.S. production in 2023/24 by 273,000 bales and raised global ending stocks by 1.6 million bales. The U.S. cotton balance sheet for 2023/24 showed slightly lower consumption but higher production and ending stocks. Production was adjusted higher to 13.1 million bales, with ending stocks at 3.2 million bales, accounting for 22.5% of use. CAI's final estimate for the 2022-23 cotton crop in India was slightly higher at 31.8 million bales, up from the previous estimate of 31.1 million bales in July. However, this is still lower than the government's third advance estimate of 34.3 million bales. In the major spot market of Rajkot, prices ended at 26756.9 Rupees, marking a slight decrease of -0.06%. Technically, the market is undergoing fresh buying, with a 11.81% increase in open interest to 142. The current price increase of 60 rupees places Cottoncandy with support at 56820, potentially testing 56480 if breached. On the upside, resistance is anticipated at 57480, with a breakthrough potentially leading to a test of 57800.

BUY COTTONCANDY JAN @ 57000 SL 56700 TGT 57300-57500. MCX

COCUDAKL

SELL COCUDAKL DEC @ 3000 SL 3040 TGT 2950-2910. NCDEX

KAPAS

SELL KAPAS APR @ 1580 SL 1600 TGT 1560-1545. NCDEX