Sell Cocudakl Jun @ 3040 SL 3080 TGT 3000-2970. NCDEX - Kedia Advisory
COTTONCANDY
Cottoncandy prices settled slightly higher by 0.18% at 54,500, supported by short covering after recent price declines. Despite the modest uptick, market sentiment remains pressured by bearish fundamentals. The Cotton Association of India (CAI) revised the country’s 2024–25 cotton production upward marginally to 291.35 lakh bales from 291.30 lakh bales, with the increase attributed to higher output in Odisha. However, sluggish trends in domestic consumption, exports, and ending stocks are weighing on the outlook. CAI reduced its cotton consumption estimate by 8 lakh bales to 307 lakh bales and revised export projections downward by 1 lakh bale to 15 lakh bales. Notably, India had exported only 10 lakh bales in the first seven months of the season, significantly trailing last year’s 28.36 lakh bales. Cotton imports, on the other hand, have surged, with 27.5 lakh bales imported by April—nearly double last year’s volume—indicating stronger reliance on global supply. Consequently, ending stocks are expected to rise to 32.54 lakh bales by September 2025, up from 30.19 lakh bales a year prior. On the global front, the USDA trimmed U.S. cotton exports by 100,000 bales and raised ending stocks to 5 million bales. Worldwide, production and trade were reduced while stocks increased, driven by lowered mill use in China and Indonesia, despite some gains in Turkey. Technically, the market witnessed fresh buying interest, with open interest rising by 11.94% to 75 contracts. Cottoncandy now finds firm support at 54,000, with the 55,000 level acting as immediate resistance.
SELL COTTONCANDY JUL @ 54700 SL 55000 TGT 54300-54100. MCX
COCUDAKL
SELL COCUDAKL JUN @ 3040 SL 3080 TGT 3000-2970. NCDEX
KAPAS
SELL KAPAS APR @ 1580 SL 1590 TGT 1570-1560. NCDEX
