Buy Cottoncandy Jul @ 56000 SL 55700 TGT 56500-56800. MCX - Kedia Advisory
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CottonCandy
Cotton candy prices experienced a decline of -1.23%, settling at 56140, primarily due to sluggish milling demand amidst muted global yarn demand. However, the downside was limited as India's cotton continued to witness strong demand from countries like Bangladesh and Vietnam. Additionally, prospects of improved crops in countries like Australia contributed to the market sentiment. The International Cotton Advisory Committee (ICAC) projected increases in cotton production, consumption, and trade for the next season, 2024-25, indicating optimism in the market outlook. India, the world's second-largest producer, is expected to witness a significant reduction in cotton stocks by nearly 31% in 2023/24, reaching their lowest level in over three decades. Lower stockpiles are anticipated to limit exports from India in the current marketing year, supporting global prices while potentially impacting domestic textile companies' margins. Looking ahead, for the marketing year 2024/25, India's cotton production is estimated to decrease by two percent due to farmers shifting acreage to higher return crops. However, mill consumption is expected to rise by two percent, driven by improving yarn and textile demand in major international markets. Additionally, with the import duty recension on extra-long staple (ELS) cotton, imports are projected to increase by 20%. Meanwhile, China's cotton imports for MY 2024/25 are forecasted to increase to 2.4 million metric tons due to higher demand for textile and apparel products domestically and internationally. Technically, the market observed long liquidation, with a drop in open interest by -1.66% and a price decrease of -700 rupees. Currently, cotton candy is supported at 55860, with potential testing of 55590 levels if this support is breached. Resistance is expected at 56600, with a move above indicating potential testing of 57070.
BUY COTTONCANDY JUL @ 56000 SL 55700 TGT 56500-56800. MCX
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