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Cotton candy

Cotton candy prices saw a modest uptick of 0.55% to settle at 58660, fueled by robust demand for Indian cotton from key buyers like Bangladesh and Vietnam. The USDA's weekly export sales report highlighted a substantial increase in net sales for the 2023/2024 season, reflecting a surge of 79% from the previous week and 64% from the prior four-week average. Despite this positive momentum, upward movement was tempered by expectations of improved crops in countries such as Australia. The International Cotton Advisory Committee (ICAC) projected growth across various metrics for the next season, 2024-25, including increases in production, consumption, and trade. However, India's cotton stocks are anticipated to decline by nearly 31% in 2023/24, reaching their lowest level in over three decades due to decreased production and rising consumption. This reduction in stockpiles could limit exports from the world's second-largest producer and support global prices, but it may also exert pressure on the margins of local textile companies. Looking ahead, India's cotton production for the current season is expected to decrease slightly, while consumption is projected to rise. The country's cotton exports are forecasted to increase, reflecting strong international demand. In addition, China's cotton imports for the marketing year 2024/25 are estimated to rise significantly, driven by higher demand for textile and apparel products domestically and internationally. From a technical perspective, the cotton candy market witnessed short covering, with a drop in open interest by -2.91% and prices increasing by 320 rupees. Support for cotton candy is expected at 58580, with potential downside towards 58490. Conversely, resistance is likely to materialize around 58780, with a breakout potentially pushing prices towards 58890.

BUY COTTONCANDY MAY @ 58500 SL 58200 TGT 58900-59200. MCX

COCUDAKL

BUY COCUDAKL MAY @ 2550 SL 2510 TGT 2600-2640. NCDEX

KAPAS

BUY KAPAS APR @ 1600 SL 1580 TGT 1620-1640. NCDEX