Sell COTTONCANDY JUL @ 54700 SL 55000 TGT 54400-54100. MCX - Kedia Advisory
Cottoncandy
Cottoncandy futures declined by 0.27% to settle at ?54,520, pressured by bearish supply-demand dynamics and long liquidation in the market. The Cotton Association of India (CAI) marginally revised India’s cotton production upward to 291.35 lakh bales from 291.30 lakh bales, citing increased output from Odisha. While this increase is minimal, the broader sentiment is affected by weakening demand indicators. Notably, the CAI reduced its cotton consumption estimate by 8 lakh bales to 307 lakh bales for the current season and trimmed export expectations by 1 lakh bale to 15 lakh bales, reflecting sluggish trade activity. India’s cotton exports are projected to fall sharply from 28.36 lakh bales last season, indicating a steep 13.36 lakh bale decline this year. On the import front, the CAI maintained the estimate at 33 lakh bales, with 27.5 lakh already imported by April—nearly double last year’s levels. Ending stocks are forecasted to rise to 32.54 lakh bales by September 30, 2025, suggesting supply accumulation due to lower consumption and exports. Internationally, the U.S. reduced export projections by 100,000 bales, raising ending stocks to 5.0 million bales, while global cotton production, consumption, and trade were all revised downward. Technically, the market experienced long liquidation as open interest plunged by 20.88% to 72 lots. Prices are currently finding support at Rs 54,370, with a break below likely to test Rs 54,220. On the upside, resistance is seen at Rs 54,610, and a move above this could lift prices toward Rs 54,700
SELL COTTONCANDY JUL @ 54700 SL 55000 TGT 54400-54100. MCX
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