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Cottoncandy

CottonCandy prices edged down by 0.09%, settling at Rs.54,650, driven by expectations of a rise in global cotton production for the 2024-25 cycle. The global production forecast has increased by 1.2 million bales to reach 117.4 million bales, supported by higher yields in India and Argentina. However, a contrasting local development has created a supply crunch, particularly in India's northern cotton-producing states - Punjab, Haryana, and Rajasthan, where kapas arrivals fell by 43% until November 30, 2024, compared to the previous year. This has led to raw material shortages for ginners and spinners, especially in Punjab, as farmers hold back supplies, anticipating higher prices. The Cotton Association of India (CAI) has maintained its cotton consumption estimate for 2024-25 at 313 lakh bales, with pressing estimates pegged at 302.25 lakh bales. Imports are projected to rise significantly to 25 lakh bales, up from 15.20 lakh bales in the previous season. By November 30, approximately 9 lakh bales had arrived at Indian ports, with the closing stock for September 30, 2025, estimated at 26.44 lakh bales, lower than last year's closing stock of 30.19 lakh bales. Globally, U.S. cotton production has been revised upwards to 14.3 million bales, contributing to the rise in world production. The market saw fresh selling, as evidenced by a 0.47% rise in open interest to 426 contracts, and a slight drop of Rs.50 in prices. Support is seen at Rs.54,040, and if this level is breached, prices could test Rs.53,420. Resistance is at Rs.55,640, with a break above this level potentially pushing prices toward Rs.56,620.

BUY COTTONCANDY JAN @ 54200 SL 53900 TGT 54500-54800. MCX

Cocudakl

SELL COCUDAKL FEB @ 2820 SL 2860 TGT 2770-2730. NCDEX

Kapas

SELL KAPAS APR @ 1505 SL 1515 TGT 1495-1485. NCDEX

Cotwasoil

SELL COTWASOIL FEB @ 1255 SL 1265 TGT 1245-1235. NCDEX