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Cotton candy

Cotton candy prices saw a marginal increase of 0.2% yesterday, settling at 58660, driven by short covering after a period of decline amid weakening demand and a growing world carryover. The USDA's weekly export sales report provided a glimmer of positivity, showing a significant uptick in net sales for the 2023/2024 period, albeit amid limited upside due to prospects of improved crops in countries like Australia. The International Cotton Advisory Committee (ICAC) projected increases across various metrics for the 2024-25 season, including cotton-producing area, production, consumption, and trade. However, this positive outlook was tempered by reports of upward revisions in cotton production estimates by organizations such as the Cotton Association of India (CAI) and the Cotton Corporation of India (CCI), leading to concerns about oversupply. India's cotton production for MY 2024/25 is estimated to decrease by two percent from the previous year, as farmers are expected to allocate acreage to higher-return crops. Despite this, mill consumption is projected to increase, supported by improving demand for yarn and textiles in major international markets. Additionally, China's cotton imports are forecasted to rise due to higher demand for textile and apparel products, further influencing global cotton dynamics. Technically, the cotton candy market witnessed short covering, with a decrease in open interest by -0.96% to settle at 412, alongside a notable price increase of 120 rupees. Presently, cotton candy finds support at 58520, with potential downside to 58370, while resistance levels are observed at 58800, with a breakthrough potentially leading to a test of 58930.

BUY COTTONCANDY MAY @ 58500 SL 58200 TGT 58900-59200. MCX

COCUDAKL

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

KAPAS

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