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Cottoncandy

Cottoncandy prices edged up by 0.28% to settle at 57280, driven by robust demand for Indian cotton from buyers in countries like Bangladesh and Vietnam. The USDA's weekly export sales report revealed a significant surge in net sales for the 2023/2024 season, up 79% from the previous week, indicating strong international demand. However, upside potential was capped by expectations of improved crop yields in countries such as Australia. Looking ahead, the International Cotton Advisory Committee (ICAC) projects an increase in cotton-producing area, production, consumption, and trade for the next season, 2024-25. Despite this positive outlook, India is expected to witness a decline in cotton stocks to their lowest level in more than three decades, primarily due to lower production and rising consumption. This reduction in stockpiles could constrain exports from India, the world's second-largest producer, and lend support to global prices, albeit potentially impacting domestic textile companies' margins. For the marketing year 2024/25, India's cotton production is estimated to decrease slightly to 25.4 million 480 lb. bales, with farmers possibly shifting acreage to higher-return crops. Conversely, mill consumption is forecasted to increase, driven by improving demand for yarn and textiles in major international markets. Moreover, with the recent removal of import duties on extra-long staple (ELS) cotton, imports are expected to rise by 20%. Technically, the market witnessed short covering, with a drop in open interest by -0.26% alongside a price increase of 160 rupees. Presently, Cottoncandy finds support at 57040, with a potential downward breach leading to a test of 56790 levels. On the upside, resistance is anticipated at 57500, with a move above potentially pushing prices to test 57710 levels.

BUY COTTONCANDY MAY @ 57000 SL 56500 TGT 57600-58000. MCX

COCUDAKL

BUY COCUDAKL MAY @ 2540 SL 2500 TGT 2590-2640. NCDEX

KAPAS

BUY KAPAS APR @ 1570 SL 1550 TGT 1590-1610. NCDEX