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Cottoncandy

Cotton candy prices experienced a marginal decline of -0.1%, settling at 57360, primarily attributed to sluggish milling demand amidst muted yarn demand in the global market. Pressure on prices was further compounded by prospects of a better crop in countries such as Australia. However, the downside was limited as demand for Indian cotton remained robust from countries like Bangladesh and Vietnam, among others. The International Cotton Advisory Committee (ICAC) has projected increases in the cotton-producing area, production, consumption, and trade for the next season, 2024-25. Notably, cotton stocks in India are expected to fall by nearly 31% in 2023/24, reaching their lowest level in more than three decades due to lower production and rising consumption. This reduction in stockpiles will limit exports from India, the world's second-biggest producer, and support global prices. For the marketing year 2024/25, India's cotton production is estimated to decrease by two percent, with farmers expected to shift acreage to higher return crops. However, mill consumption is anticipated to increase by two percent as yarn and textile demand improve in major international markets. Additionally, with the recent recension of import duty on extra-long staple (ELS) cotton, imports are projected to increase by 20 percent. Technically, the cotton candy market witnessed long liquidation, with a drop of -0.79% in open interest alongside a decline in prices by -60 rupees. Key support levels for cotton candy are identified at 57060, with potential downside testing to 56750 levels. Conversely, resistance is anticipated at 57640, with a breakthrough possibly leading to further price testing at 57910.

BUY COTTONCANDY MAY @ 57200 SL 56800 TGT 57600-57800. MCX

COCUDAKL

BUY COCUDAKL JUN @ 2580 SL 2540 TGT 2630-2670. NCDEX

KAPAS

BUY KAPAS APR @ 1550 SL 1530 TGT 1570-1590. NCDEX