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Cottoncandy

Cottoncandy prices settled lower by 0.36% at Rs.54,600 due to profit booking after a brief rally sparked by bullish U.S. planting estimates. The USDA reported a 12% year-on-year decline in intended U.S. cotton acreage to 9.8 million acres for 2025, signaling tighter supply expectations. Domestically, the Cotton Association of India (CAI) further cut its 2024-25 crop estimate to 295.30 lakh bales (170 kg each), down from 301.75 lakh bales, driven by a nearly 10% decline in planted area and reduced output in key states like Gujarat and Maharashtra. Imports are expected to double this season to 32 lakh bales, compared to 15.20 lakh bales last year, reflecting the domestic supply gap. While consumption remains steady at 315 lakh bales, exports are forecast to plunge 40% to 17 lakh bales, pressured by competitive global supply and weak international demand. CAI estimates end-season stocks to drop to 23.49 lakh bales, down from 30.19 lakh bales last year, adding to the overall tighter domestic balance sheet. On the global front, Brazil’s cotton output is projected to rise by 1.6% to 3.76 million tonnes, supported by a 4.8% increase in acreage. However, mills remain well-stocked, and their restrained buying is expected to limit upside movement in the near term. Technically, the market is under long liquidation, with open interest falling by 0.4% to 247 as prices eased Rs.200. Cottoncandy has support at Rs.54,600, with further weakness likely toward Rs.54,400, while resistance is seen at Rs.54,800, and a move above may lead to testing Rs.55,000.

SELL COTTONCANDY MAY @ 54800 SL 55200 TGT 5440-5400. MCX

COCUDAKL

SELL COCUDAKL MAY @ 2880 SL 2920 TGT 2840-2800. NCDEX

KAPAS

BUY KAPAS APR @ 1445 SL 1435 TGT 1455-1465. NCDEX