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Cottoncandy

Cotton candy prices experienced a decline of -0.9% yesterday, settling at 57,080, primarily due to concerns over sluggish milling demand amid muted global yarn demand. However, the downside was limited as India continued to witness strong demand for cotton from countries like Bangladesh and Vietnam. Additionally, prospects of a better crop in countries such as Australia also influenced market sentiment. The International Cotton Advisory Committee (ICAC) projected increases in cotton-producing areas, production, consumption, and trade for the next season, 2024-25. India's cotton stocks are anticipated to decrease by nearly 31% in 2023/24, reaching their lowest level in over three decades, driven by lower production and rising consumption. This decrease in stockpiles is expected to constrain exports from the world's second-biggest producer, supporting global prices while potentially lifting domestic prices and impacting the margins of local textile companies. India's cotton production for the current season is estimated at 30.97 million bales, with consumption expected to rise to 31.70 million bales. Looking ahead to the 2024/25 marketing year, India's cotton production is estimated to decrease by 2% due to farmers shifting acreage to higher return crops. However, mill consumption is forecasted to increase by 2% as yarn and textile demand improves in major international markets. China's cotton imports for the same period are expected to rise to meet higher demand for textile and apparel products, while production is forecasted to remain stable in Xinjiang but decline in other regions. Technically, the cotton candy market witnessed fresh selling pressure, with open interest increasing by 1.11% while prices declined by -520 rupees. Support levels are seen at 56,900 and 56,720, while resistance is likely at 57,280, with a potential move above leading to testing of 57,480.

SELL COTTONCANDY JUL @ 57200 SL 57500 TGT 56700-56500. MCX

COCUDAKL

SELL COCUDAKL JUN @ 2700 SL 2740 TGT 2660-2620. NCDEX

KAPAS

BUY KAPAS APR @ 1570 SL 1555 TGT 1595-1610. NCDEX