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Cottoncandy

Cotton candy prices dipped slightly by -0.28% yesterday, settling at 57420, primarily influenced by prospects of a stronger crop in countries like Australia. However, the downside was limited as demand for Indian cotton remained robust, particularly from buyers in countries such as Bangladesh and Vietnam. The International Cotton Advisory Committee (ICAC) projected an increase in cotton-producing areas, production, consumption, and trade for the upcoming 2024-25 season, indicating a positive outlook for the cotton market. 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 due to lower production and rising consumption. This reduction in stockpiles is expected to constrain exports from the world's second-largest producer, supporting global prices while potentially impacting the margins of local textile companies. Looking ahead, India's cotton production for the marketing year 2024/25 is estimated to decrease by two percent, with farmers likely to shift acreage to higher return crops. However, mill consumption is forecasted to increase by two percent, driven by improving demand in major international markets. Import estimates for extra-long staple (ELS) cotton have also risen by 20%, reflecting the market's dynamics and demand patterns. Meanwhile, China's cotton imports for the 2024/25 marketing year are forecasted to increase to 2.4 million metric tons, driven by higher domestic and international demand for textile and apparel products. Technically, the cotton candy market experienced long liquidation, with a drop in open interest by -0.52% and prices decreasing by -160 rupees. Support for cotton candy is identified at 57320, with potential downside testing at 57220 levels, while resistance is likely at 57520, with a breakthrough potentially leading to a test of 57620.

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