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CottonCandy

Cotton candy prices rose by 0.85% to settle at 56,960, buoyed by robust demand for Indian cotton from countries like Bangladesh and Vietnam, despite concerns over sluggish milling demand and muted yarn demand globally. However, the upside was capped by expectations of a better crop in countries such as Australia. The International Cotton Advisory Committee (ICAC) has projected increases in cotton-producing area, production, consumption, and trade for the upcoming season, 2024-25. India's cotton stocks are anticipated to decline by nearly 31% in the 2023/24 marketing year, reaching their lowest level in over three decades, driven by lower production and rising consumption. This reduction in stockpiles is expected to limit exports from the world's second-largest producer, supporting global prices while potentially lifting domestic prices and affecting the margins of local textile companies. India's cotton exports for the season could rise to 2.20 million bales from 1.55 million bales a year ago. Looking ahead to the 2024/25 marketing year, India's cotton production is estimated to decrease by two percent due to farmers shifting acreage to higher return crops. However, mill consumption is projected to increase by two percent as yarn and textile demand improves internationally. Additionally, China's cotton imports for the same period are forecasted to rise on higher domestic and international demand for textile and apparel products. Technically, the cotton candy market is witnessing short covering, with open interest remaining unchanged and prices increasing by 480 rupees. Support is found at 56,600, with a potential test of 56,230 if prices drop below this level. Resistance is likely at 57,260, with a move above possibly testing 57,550

BUY COTTONCANDY JUL @ 56600 SL 56300 TGT 57000-57200. MCX

COCUDAKL

BUY COCUDAKL JUN @ 2650 SL 2610 TGT 2700-2730. NCDEX

KAPAS

BUY KAPAS APR @ 1575 SL 1560 TGT 1590-1600. NCDEX