IGI Logo

Cottoncandy

Cottoncandy settled slightly up by 0.03% at ?58,430, following the USDA's reduction in India's cotton production forecast for the 2024-25 season to 30.72 million bales due to crop damage from excessive rains and pest issues. The reduction in ending stocks to 12.38 million bales also contributed to the market sentiment. Cotton acreage in the current kharif season is down by 9% at 110.49 lakh hectares compared to 121.24 lakh hectares in the same period last year, further limiting supply. However, the upside in prices was restrained by the arrival of raw cotton in Punjab's mandis. Cotton exports for the 2023-24 season, ending in September, are expected to rise by about 80% to 28 lakh bales, driven by strong demand from Bangladesh and Vietnam. In contrast, cotton exports in the previous season were only 15.50 lakh bales. Imports also saw an increase, rising to 16.40 lakh bales from 12.50 lakh bales last year. The Cotton Association of India (CAI) estimates that closing stocks by the end of September 2024 will drop to 23.32 lakh bales, down from 28.90 lakh bales a year earlier, due to high domestic consumption. On the global front, the U.S. cotton production forecast for 2024/25 was reduced to 14.5 million bales, and global production, consumption, and trade estimates were also lowered. World ending stocks are projected at 76.5 million bales. Technically, the market is under short covering, with open interest dropping by 1.96%. Cottoncandy has support at ?58,320, and a break below could see prices testing ?58,210. Resistance is likely at ?58,520, and a move above this level could push prices to ?58,610.

BUY COTTONCANDY SEP @ 58200 SL 57800 TGT 58600-58800. MCX

COCUDAKLCOCUDAKL

SELL COCUDAKL DEC @ 3040 SL 3090 TGT 2980-2920. NCDEX

KAPAS

SELL KAPAS APR @ 1630 SL 1645 TGT 1610-1600. NCDEX