Sell Cottoncandy Jul @ 54000 SL 54400 TGT 53600-53300. MCX - Kedia Advisory
COTTONCANDY
Cottoncandy prices declined by 0.68% to settle at 55,630, pressured by rising domestic and global supply estimates. According to the Cotton Association of India (CAI), closing stocks for the 2024-25 season are projected at 55.59 lakh bales, a significant 84% increase from the previous year. CAI revised its cotton pressing estimate upward to 311.40 lakh bales from 301.14 lakh bales due to higher crop output, pushing the total supply estimate to 380.59 lakh bales. This increase comes alongside subdued export demand, with exports expected to fall 40% year-on-year to 17 lakh bales, while imports are forecast to more than double to 39 lakh bales from last year’s 15.2 lakh bales. By the end of June, stocks stood at 108.01 lakh bales, with textile mills holding 32 lakh bales and the rest distributed among CCI, traders, and exporters. Though domestic consumption is slightly higher at 308 lakh bales, the rise in imports and lower exports signal a bearish outlook. Globally, the U.S. raised its 2025/26 production forecast to 14.60 million bales, a 600,000 bale increase from June. Ending stocks are expected at 4.60 million bales with a stocks-to-use ratio of 32.4%. Global production and ending stocks are also projected higher, led by increases in China, the U.S., and Mexico. Technically, Cottoncandy is under long liquidation with open interest plummeting by 33.33% to just 8, reflecting reduced trader participation. Support lies at 54,270, and a drop below may test 52,910. Resistance is seen at 56,500, above which prices may rise to 57,370.
SELL COTTONCANDY JUL @ 54000 SL 54400 TGT 53600-53300. MCX
COCUDAKL
SELL COCUDAKL AUG @ 3230 SL 3270 TGT 3190-3160. NCDEX
KAPAS
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