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Cottoncandy

Cottoncandy prices experienced a decline of 0.61% yesterday, settling at 55,760, primarily driven by concerns surrounding sluggish milling demand amidst muted global yarn demand. However, the downside was limited as India continued to witness strong demand for cotton from countries like Bangladesh and Vietnam, among others. Additionally, prospects of a better crop in countries such as Australia contributed to the market sentiment. The International Cotton Advisory Committee (ICAC) 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. Looking ahead to the marketing year 2024/25, India's cotton production is estimated to decrease by two percent, with a shift in acreage towards higher return crops. Import duty recension on extra-long staple (ELS) cotton is anticipated to result in higher imports. Meanwhile, China's cotton imports for the marketing year 2024/25 are forecasted to increase on the back of higher domestic and international demand for textile and apparel products. Technically, the cottoncandy market is undergoing long liquidation, with a significant drop in open interest by 13.31% to settle at 306 contracts, while prices decreased by 340 rupees. Cottoncandy is currently finding support at 55,560, with a potential test of 55,360 levels if it falls below this support. Resistance is likely at 56,020, and a move above this level could see prices testing 56,280. This technical overview suggests a cautious sentiment prevailing in the market amidst evolving demand dynamics and technical factors.

BUY COTTONCANDY MAY @ 55600 SL 55300 TGT 56000-56400. MCX

COCUDAKL

BUY COCUDAKL JUN @ 2680 SL 2640 TGT 2730-2770. NCDEX

KAPAS

BUY KAPAS APR @ 1580 SL 1560 TGT 1600-1615. NCDEX