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Cottoncandy

Cotton candy prices experienced a decline of -1.1% in yesterday's trading session, settling at 55980, primarily driven by sluggish milling demand amid muted global demand for yarn. Additionally, pressure mounted from prospects of a better crop in countries like Australia. However, downside potential was limited by strong demand for Indian cotton from countries such as Bangladesh and Vietnam. The International Cotton Advisory Committee (ICAC) projected increases in cotton-producing areas, production, consumption, and trade for the upcoming season, 2024-25. India's cotton stocks are anticipated to decline by nearly 31% in 2023/24, reaching their lowest level in more than three decades due to lower production and rising consumption. This reduction in stockpiles is expected to constrain exports from India, the world's second-largest cotton producer, supporting global prices but potentially impacting the margins of local textile companies. India's cotton production for the current season is forecasted to decrease slightly, with consumption expected to rise. Moreover, India's cotton exports are projected to increase compared to the previous year. Looking ahead to the 2024/25 marketing year, India's cotton production is estimated to decrease by two percent, while mill consumption is expected to rise by two percent as yarn and textile demand improves in major international markets. Meanwhile, China's cotton imports for the same period are forecasted to increase on higher domestic and international demand for textile and apparel products. From a technical perspective, the market witnessed fresh selling pressure, with a gain in open interest by 0.54% despite prices declining by -620 rupees. Presently, cotton candy finds support at 55700, with a potential downside test towards 55420 levels. Conversely, resistance is likely at 56380, with a breakout potentially leading to a test of 56780 levels.

BUY COTTONCANDY MAY @ 55700 SL 55300 TGT 56200-56600. MCX

COCUDAKL

BUY COCUDAKL JUN @ 2600 SL 2560 TGT 2650-2690. NCDEX

KAPAS

BUY KAPAS APR @ 1550 SL 1530 TGT 1570-1580. NCDEX