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Cottoncandy

Cottoncandy futures observed a decrease of -0.35%, settling at 56720, primarily due to reports of pink bollworm infestation affecting cotton crops. The infestation has notably decreased from 30.62% in 2017-18 to 10.80% in 2022-23. Certified cotton stocks available for delivery against contracts dropped significantly to 6,325 bales on December 5th from a two-year high of 87,770 bales on December 1st. Brazilian cotton shipments increased by 12% in November, reaching 253.71 thousand tons, but a 5.5% decline compared to November 2022. Global cotton production is projected to surpass consumption for the second consecutive year, with an anticipated 3.25% growth to 25.4 million metric tons in the 2023-2024 season. The Cotton Association of India (CAI) revised down its production estimate for the current season to 29.4 million bales due to pink bollworm damage in Haryana and significant declines in north Maharashtra attributed to inadequate rainfall. The USDA's November report increased anticipated U.S. production by 273,000 bales, raising global ending stocks by 1.6 million bales. The U.S. cotton balance sheet for 2023/24 shows slightly lower consumption but higher production and ending stocks. Global cotton balance sheets for the same period reflect lower consumption, higher production, and stocks. In the Rajkot spot market, cotton prices closed at 26393.6 Rupees, down by -0.37%. Technically, the market indicates a fresh selling trend with a 2.87% increase in open interest (settling at 179) and prices down by -200 rupees. Cottoncandy finds support at 56540, potentially testing 56370 levels if breached. Resistance is expected at 56940, with a breakthrough possibly leading to prices testing 57170 levels.

BUY COTTONCANDY JAN @ 56500 SL 56200 TGT 56900-57100. MCX

COCUDAKL

SELL COCUDAKL JAN @ 2820 SL 2860 TGT 2760-2720. NCDEX

KAPAS

BUY KAPAS APR @ 1560 SL 1545 TGT 1580-1595. NCDEX