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Cotton

Cotton prices declined by 0.51% to 58,660 due to improved supply prospects with the new crop season beginning in October 2023. As arrivals increase, price pressure is anticipated. However, the drop is expected to be limited due to a weaker cotton production outlook, which is estimated to decrease by 8%-10% compared to the previous year, primarily because of reduced cotton cultivation in 2023. Various factors, including a prolonged dry spell and damage from the pink bollworm in North India, may affect cotton yields and quality for the 2023-24 crop. Global cotton production and consumption are also expected to decrease in the 2023-24 outlook. The U.S. cotton projections indicate lower production, exports, and ending stocks. India is predicted to produce 330-340 lakh bales of cotton in the 2023-24 season, beginning on October 1. In Telangana, cotton cultivation faced challenges due to unfavorable seasonal conditions, impacting cotton area. Cotton picking is expected to gain momentum in the coming weeks. The central government forecasts normal rainfall and an increase in cotton cultivation for the year 2023-24. In the major spot market of Rajkot, cotton prices closed at 27,636.55 Rupees, showing a 0.55% decrease. From a technical perspective, long liquidation was observed, with a 0.92% decrease in open interest and a price drop of 300 rupees. Key support levels for Cottoncandy are at 58,240, with potential testing at 57,820, while resistance is likely at 58,940, possibly leading to price tests at 59,220.

SELL COTTONCANDY NOV @ 58700 SL 59000 TGT 58400-58200. MCX 

SELL COCUDAKL DEC @ 2800 SL 2840 TGT 2750-2720. NCDEX 

SELL KAPAS APR @ 1635 SL 1655 TGT 1610-1600. NCDEX