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Cotton

Cottoncandy witnessed a decline of -0.65% settling at 58320, attributed to profit booking subsequent to the recent price surge triggered by the USDA's October WASDE report. The report cut U.S. production for 2023/24 due to lower yields in Texas. Brazil is projected to surpass U.S. cotton production and exports, marking a significant shift. Australia experienced a substantial increase in cotton exports to China, capitalizing on improved trade relations. The Cotton Association of India (CAI) released its final estimate for the 2022-23 cotton season, slightly raising the crop production to 31.8 million bales, although this is lower than the government's estimate of 34.3 million bales for the same period. India anticipates a production of 330-340 lakh bales for the 2023-24 season, with sowing surpassing 12.7 million hectares. However, the following season may witness a 7.5% decline in production due to lower planted area and adverse El Nino weather conditions, with a predicted rise in imports. Technically, the market depicts long liquidation, with a decrease in open interest by -0.93% to settle at 107. Despite this, prices have dropped by -380 rupees. Support for Cottoncandy stands at 58220, potentially testing levels at 58130, while resistance is projected at 58400, potentially leading to price testing at 58490 upon a breakthrough.

SELL COTTONCANDY NOV @ 58400 SL 58700 TGT 58000-57800. MCX

COCUDAKL

SELL COCUDAKL DEC @ 2920 SL 2960 TGT 2860-2800. NCDEX

KAPAS

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