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Cottoncandy

Cottoncandy prices saw a modest increase of 0.18% to settle at 56,080, buoyed by strong demand for Indian cotton from countries like Bangladesh and Vietnam. However, the upside was capped by sluggish milling demand amid muted global demand for yarn. Additionally, prospects of a better crop in countries such as Australia added pressure to prices. The International Cotton Advisory Committee (ICAC) projected increases in cotton-producing area, production, consumption, and trade for the next season, 2024-25. Meanwhile, in India, cotton stocks are expected to plummet by nearly 31% in 2023/24, reaching their lowest level in over three decades, due to lower production and rising consumption. This decrease in stockpiles is expected to limit exports from India, the world's second-largest cotton producer, and support global prices. However, it could also squeeze the margins of local textile companies. Looking ahead, for the marketing year 2024/25, India's cotton production is estimated to decrease by 2% to 25.4 million 480 lb. bales, with farmers potentially shifting acreage to higher-return crops. Mill consumption is forecasted to rise by 2%, driven by improved demand for yarn and textiles in major international markets. Additionally, with the recent removal of import duties on extra-long staple (ELS) cotton, imports are estimated to increase by 20%. Technically, the cotton market experienced short covering, with a 3.76% drop in open interest, settling at 358 contracts, while prices increased by 100 rupees. Currently, cottoncandy has support at 55,860, with potential testing of 55,630 if this level is breached. On the upside, resistance is expected at 56,360, with prices potentially testing 56,630. This technical overview suggests a cautiously optimistic outlook for cottoncandy prices in the near term.

BUY COTTONCANDY MAY @ 55800 SL 55500 TGT 56200-56600. MCX

COCUDAKL

BUY COCUDAKL JUN @ 2620 SL 2580 TGT 2660-2690. NCDEX

KAPAS

BUY KAPAS APR @ 1560 SL 1545 TGT 1575-1585. NCDEX