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Cottoncandy

Yesterday, Cottoncandy prices closed lower by -0.21% at 56,220, reflecting concerns over sluggish milling demand amidst muted global yarn demand. Despite these challenges, the downside was limited as India continued to experience strong demand for its cotton from countries like Bangladesh and Vietnam. Prospects of a potentially better crop in countries such as Australia added to the market dynamics. The International Cotton Advisory Committee (ICAC) has projected growth in cotton-producing areas, production, consumption, and trade for the upcoming season, 2024-25. In India, cotton stocks are anticipated to decrease by nearly 31% in the 2023/24 marketing year, reaching their lowest levels in over three decades due to lower production and increased domestic consumption. This reduction in stocks is expected to constrain exports from India, the world's second-largest producer, which could support global prices while potentially squeezing margins for local textile companies. For the current season, India is forecasted to produce 30.97 million bales of cotton, slightly lower than the previous year, with consumption expected to rise. Cotton exports from India are projected to increase to 2.20 million bales from 1.55 million bales last year, according to the Cotton Association of India (CAI). Looking ahead to MY 2024/25, India's cotton production is estimated to decline to 25.4 million bales, reflecting a shift in acreage towards higher-return crops like pulses and maize. Technically, the cotton market is currently experiencing selling pressure, indicated by a modest increase of 0.56% in open interest to settle at 360 contracts, alongside a price decline of -120 rupees. Support levels for Cottoncandy are identified at 56,020, with a potential test of 55,810 on a break below. Resistance is anticipated at 56,420, and a breakout above could lead to testing the 56,610 mark.

BUY COTTONCANDY JUL @ 56000 SL 55700 TGT 56500-56800. MCX

Cocudakl

SELL COCUDAKL JUL @ 2740 SL 2790 TGT 2680-2640. NCDEX

Kapas

BUY KAPAS APR @ 1560 SL 1545 TGT 1580-1600. NCDEX