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Cottoncandy

Cottoncandy prices declined by 0.36% to close at ?54,600, weighed down by profit booking following a recent uptrend triggered by bullish planting estimates from the USDA. The U.S. Department of Agriculture reported that cotton planting intentions for 2025 are expected at 9.8 million acres—a significant 12% drop from the previous year—raising global supply concerns. However, this upward price sentiment was tempered by weak mill demand and increased domestic cotton supply, contributing to the price pullback. In India, the Cotton Association of India (CAI) sharply revised cotton import estimates for the 2024-25 season to 33 lakh bales, more than double the previous year’s 15.20 lakh bales. The revision is driven by further downward revisions to domestic output, now estimated at 291.30 lakh bales—down 4 lakh bales from earlier figures, largely due to reduced production in Maharashtra. Meanwhile, CAI estimates cotton supply through March at 306.83 lakh bales, with significant stocks—127.83 lakh bales—still held by mills, the Cotton Corporation of India, and other entities, keeping mill demand subdued. On the global front, the USDA’s April update reflects reductions in world production, consumption, and trade. Notably, global textile mill use dropped by 520,000 bales due to weaker demand in China and Indonesia. U.S. exports were trimmed by 100,000 bales, raising U.S. ending stocks to 5.0 million bales. Technically, Cottoncandy is under long liquidation as open interest remained flat at 247 contracts while prices dipped ?200. The price is finding support at ?54,600, with a break below this level possibly testing the same support again. Resistance remains static at ?54,600; a breakout above could see prices testing the same level again due to lack of clear directional momentum.

SELL COTTONCANDY MAY @ 54600 SL 54900 TGT 54300-54100. MCX

Cocudakl

BUY COCUDAKL MAY @ 2860 SL 2820 TGT 2900-2930. NCDEX

KAPAS

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