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Cotton candy

Cotton candy prices settled down by 0.05% at ?58,570 as new raw cotton arrivals commenced in Punjab's mandis. The USDA has revised India's cotton production forecast for the 2024-25 season down to 30.72 million bales due to crop damage from excessive rains and pest issues, while ending stocks have also been reduced to 12.38 million bales. Cotton acreage this kharif season is down by approximately 9% compared to the previous year, with 110.49 lakh hectares under cultivation compared to 121.24 lakh hectares last year. Cotton exports for the 2023-24 crop year, ending in September, are projected at around 28 lakh bales, an 80% increase driven by strong demand from countries such as Bangladesh and Vietnam. In contrast, last year's exports were 15.50 lakh bales. Imports have also risen to 16.40 lakh bales, up from 12.50 lakh bales the previous year. According to the Cotton Association of India (CAI), closing stocks as of September 30, 2024, are estimated at 23.32 lakh bales, down from 28.90 lakh bales a year ago. The consumption during this crop year is projected at 317 lakh bales, with 291 lakh bales already consumed by the end of August. In the U.S., cotton production for 2024/25 has been revised down to 14.5 million bales, reflecting lower yields in the Southwest. Globally, cotton production, consumption, and trade estimates have been reduced, with world ending stocks revised down by 1.1 million bales to 76.5 million bales. Technically, the market is experiencing long liquidation, with open interest dropping by 9.3% to settle at 117 contracts. Support for cotton candy is currently at ?58,400, with a potential test of ?58,220. Resistance is seen at ?58,770, and a move above this could lead to prices testing ?58,960.

BUY COTTONCANDY SEP @ 58500 SL 58200 TGT 59000-59400. MCX

COCUDAKL

SELL COCUDAKL DEC @ 3060 SL 3120 TGT 3000-2960. NCDEX

KAPAS

SELL KAPAS APR @ 1625 SL 1640 TGT 1610-1600. NCDEX