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Cotton Candy

Cotton Candy prices fell by 0.97% to settle at Rs.54,370, weighed down by weak yarn market demand and payment constraints. India's cotton production for 2024/25 is projected to decline by 7.4% to 30.2 million bales due to reduced acreage and crop damage caused by excessive rainfall and pests. The USDA also revised India's production forecast lower to 30.72 million bales, reducing ending stocks to 12.38 million bales. Meanwhile, global production estimates were raised by over 200,000 bales, with increases in China, Brazil, and Argentina offsetting declines in the U.S. and Spain. India's cotton acreage has dropped by 9% to 11.29 million hectares this year, as farmers in Gujarat shifted to groundnuts for better returns. Consequently, cotton imports are expected to rise to 2.5 million bales from 1.75 million last year, while exports are likely to fall to 1.8 million bales from 2.85 million. Domestic demand is projected to remain steady at 31.3 million bales. Globally, the U.S. reduced its 2024/25 cotton production estimate by 300,000 bales to 14.2 million due to hurricane damage, and exports were lowered by 300,000 bales to 11.5 million. However, world ending stocks were slightly reduced to 76.3 million bales, reflecting weaker import demand, especially from China. Technically, the market witnessed long liquidation as open interest dropped by 1.86% to 158 contracts, with prices declining by Rs.530. Support is seen at Rs.54,080, and a break below could test Rs.53,800. Resistance is likely at Rs.54,570, with potential upside testing Rs.54,780. Market sentiment remains pressured by reduced production, export constraints, and weak downstream demand.

BUY COTTONCANDY NOV @ 54200 SL 53800 TGT 54600-54900. MCX

Cocudakl

SELL COCUDAKL DEC @ 2780 SL 2820 TGT 2720-2680. NCDEX

Kapas

SELL KAPAS APR @ 1535 SL 1545 TGT 1525-1515. NCDEX

Cotton Wasoil

SELL COTWASOIL DEC @ 1260 SL 1270 TGT 1250-1240. NCDEX