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Cottoncandy

Cottoncandy prices saw a slight increase of 0.02%, settling at 58,750, driven by a revised cotton production forecast for India. The USDA lowered India’s cotton production forecast for the 2024-25 season to 30.72 million bales, down due to excessive rains and pest issues, while ending stocks were reduced to 12.38 million bales. Acreage under cotton cultivation is also down by 9% this Kharif season, with the total area reaching 110.49 lakh hectares compared to 121.24 lakh hectares last year. Despite this, the upside in prices was capped as raw cotton arrivals began in Punjab mandis, signaling the harvest season’s commencement. Cotton exports for the 2023-24 crop year are projected to rise by 80% to 28 lakh bales, primarily driven by increased demand from consuming nations like Bangladesh and Vietnam. This is a significant rise from the 15.50 lakh bales exported in the previous year. On the other hand, imports have also risen to 16.40 lakh bales, compared to 12.50 lakh bales last year. Closing stocks by the end of September 2024 are expected to fall to 23.32 lakh bales, down from 28.90 lakh bales the previous year. Domestic cotton consumption is estimated at 317 lakh bales for the year. Globally, the U.S. cotton production forecast for 2024/25 was lowered to 14.5 million bales, a reduction of 600,000 bales due to lower yields. The global cotton production outlook also saw a decrease of 1.2 million bales, primarily due to smaller crops in India, Pakistan, and the U.S. Technically, the market is experiencing fresh buying with a 28.21% increase in open interest. Cottoncandy is supported at 58,340, with a potential test of 57,920 if prices fall. Resistance is seen at 59,040, with a move above potentially leading to 59,320.

BUY COTTONCANDY NOV @ 58600 SL 58300 TGT 58900-59200. MCX

COCUDAKL

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

KAPAS

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