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Cottoncandy

Cotton candy prices edged up by 0.3% to Rs.57,000, driven by a decrease in cotton acreage and shifting market dynamics. The kharif season has seen a notable decline in cotton planting, with current acreage at 110.49 lakh hectares, down 9% from 121.24 lakh hectares last year. The Cotton Association of India (CAI) has adjusted its forecast, estimating the acreage for this year to be around 113 lakh hectares compared to 127 lakh hectares in the previous season. The CAI anticipates a tighter cotton balance sheet for the upcoming year due to higher exports, particularly to Bangladesh. Cotton exports have surged from 15 lakh bales to 28 lakh bales this year, driven by strong demand from neighboring countries. For the 2023-24 season, India's cotton production and consumption are both around 325 lakh bales, with exports at 28 lakh bales and imports at 13 lakh bales. Globally, the cotton balance sheet for 2024/25 shows reductions in production, consumption, and stocks. World production has been cut by 2.6 million bales due to lower outputs in the U.S. and India. Global consumption has decreased by almost 1 million bales, primarily due to reduced consumption in China. The market is experiencing fresh buying activity, with open interest increasing by 0.57% to settle at 176 contracts. Prices have risen by Rs.170, with support seen at Rs.56,900. A breach below this support could test Rs.56,800. Resistance is observed at Rs.57,100, and a move above this level could see prices reaching Rs.57,200.

BUY COTTONCANDY SEP @ 56900 SL 56500 TGT 57400-57800. MCX

Cocudakl

BUY COCUDAKL SEP @ 3270 SL 3220 TGT 3330-3360. NCDEX

Kapas

BUY KAPAS APR @ 1590 SL 1575 TGT 1605-1615. NCDEX