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COTTONCANDY

Cottoncandy prices edged up by 0.45% yesterday, settling at 55,850, supported by short covering after a recent slide driven by a sharp rise in domestic stocks and higher production estimates. The Cotton Association of India (CAI) now pegs closing stocks for the 2024–25 season at 55.59 lakh bales — a significant 84% jump compared to last year’s 30.19 lakh bales — due to higher pressing numbers and strong imports. CAI revised its pressing estimate to 311.40 lakh bales, up from its earlier 301.14 lakh bales forecast, reflecting better-than-expected output in key states. By end-June, total supply was at 356.76 lakh bales, while consumption reached 233.5 lakh bales and exports remained subdued at just 15.25 lakh bales. India’s cotton exports are projected to slump by 40% this season to 17 lakh bales from last year’s 28.36 lakh bales, while imports are seen more than doubling to 39 lakh bales, indicating ample availability domestically. On the global front, the July U.S. balance sheet showed higher production and ending stocks for 2025/26 due to increased planted and harvested acreage despite slightly lower yields. World production is also revised higher by 1.43 million bales, mainly due to larger crops in China and the U.S., outweighing cuts for Pakistan and Egypt. Ending stocks globally are up by 520,000 bales as production gains surpass consumption increases. Technically, cottoncandy is under short covering with open interest plunging by 40% while prices rose by 250 rupees. The contract finds immediate support at 55,600, with a drop below exposing 55,350, while resistance is likely at 56,300; a break above this could open the door to test 56,750.

SELL COTTONCANDY JUL @ 56000 SL 56300 TGT 55700-55500. MCX

COCUDAKL

SELL COCUDAKL AUG @ 3180 SL 3210 TGT 3150-3120. NCDEX

KAPAS

SELL KAPAS APR @ 1615 SL 1625 TGT 1605-1595. NCDEX