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Cottoncandy 

Cottoncandy prices experienced a notable decline of -1.86% yesterday, settling at 60,120, primarily driven by muted global demand and the anticipation of a better crop in countries like Australia. The International Cotton Advisory Committee (ICAC) projected increases in cotton-producing areas, production, consumption, and trade for the next season, 2024-25. Projections indicate a 3% increase in cotton-producing area, a 2.5% rise in production, a 2.9% increase in consumption, and a nearly 4% growth in global cotton trade compared to the previous season. Domestically, the Cotton Association of India (CAI) and the Cotton Corporation of India (CCI) revised their cotton production estimates upwards for the current season, highlighting expectations of higher output. However, India's cotton production for MY 2024/25 is estimated to decrease by 2% due to anticipated shifts in acreage towards other crops with higher returns. Similarly, China's cotton imports for MY 2024/25 are forecasted to increase to meet higher demand for textile and apparel products. The rebound in exports of textile and apparel products, coupled with increased demand, is expected to drive imports. In the spot market, prices in Rajkot, a major cotton trading hub, saw a marginal decline of -0.02% to end at 28,864.5 Rupees. From a technical perspective, the cotton market is witnessing long liquidation, indicated by a decrease of -0.9% in open interest to settle at 438 contracts, coupled with a significant price drop of -1,140 rupees. Support for Cottoncandy is identified at 59,980, with potential downside towards 59,850, while resistance is anticipated at 60,260, with a breakout potentially leading to testing of 60,410 levels.

SELL COTTONCANDY MAY @ 60400 SL 60800 TGT 60000-59700. MCX

COCUDAKL

BUY COCUDAKL MAY @ 2500 SL 2450 TGT 2550-2580. NCDEX

KAPAS 

BUY KAPAS APR @ 1505 SL 1490 TGT 1525-1535. NCDEX