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Cotton candy

Cotton candy prices dipped by -0.68%, settling at 58540, mirroring trends in ICE prices due to factors such as increased certificated stocks, declining demand, and a growing world carryover. Despite a notable uptick in USDA weekly export sales, concerns regarding a potentially better crop in countries like Australia limited the upside for cotton prices. The International Cotton Advisory Committee (ICAC) projected increases in cotton-producing area, production, consumption, and trade for the upcoming season, 2024-25, signaling a potentially larger global supply. In India, the Cotton Association revised production estimates upwards for the current season, attributing it to increased crop production expectations. However, for MY 2024/25, cotton production is forecasted to decrease by two percent, with farmers expected to shift acreage to higher return crops. On the other hand, China's cotton imports for MY 2024/25 are anticipated to rise on the back of higher domestic and international demand for textile and apparel products. This follows a rebound in exports of textile and apparel products and increased demand for imported cotton. Technically, the cotton candy market witnessed long liquidation, with open interest remaining unchanged at 416 contracts, while prices declined by -400 rupees. Support for Cottoncandy is identified at 58160, with a potential test of 57780 levels below that. Resistance is expected at 59060, and a move above could lead to testing the 59580 mark. Market participants are closely monitoring global production trends, consumption patterns, and trade dynamics for further insights into cotton price movements.

BUY COTTONCANDY MAY @ 58400 SL 58000 TGT 58800-59000. MCX

COCUDAKL

BUY COCUDAKL MAY @ 2550 SL 2510 TGT 2600-2640. NCDEX

KAPAS

BUY KAPAS APR @ 1600 SL 1580 TGT 1620-1640. NCDEX