IGI Logo

COTTONCANDY

Cottoncandy prices rebounded by 1.82% to close at 55,950, driven by short covering after recent declines sparked by higher domestic production estimates. The Cotton Association of India (CAI) marginally raised India’s 2024–25 production forecast to 291.35 lakh bales, citing better output in Odisha. However, bearish undertones remain as CAI lowered its cotton consumption estimate by 8 lakh bales to 307 lakh bales and trimmed its export forecast by 1 lakh bale to 15 lakh bales, signaling weaker domestic and overseas demand. Notably, India’s cotton exports are expected to drop sharply by over 13 lakh bales compared to last year, while imports have already more than doubled year-on-year, putting further pressure on domestic prices. On the global front, the latest USDA WASDE report offered some supportive cues. It revised down the world cotton production for the 2025–26 season by over 800,000 bales, with significant cuts for India, the US, and Pakistan outweighing an increase for China. Global consumption was trimmed by 300,000 bales, while global ending stocks are projected to decline by nearly 1.6 million bales due to lower beginning stocks and a bigger cut in production than consumption. For the US, adverse weather in the Delta has lowered the harvested area and yield forecast, pushing production to its second lowest in a decade. Technically, Cottoncandy indicate fresh buying interest with open interest up by 6.25% to 68 contracts, alongside a 1,000 price gain. Immediate support lies at 55,050, and a break below could push prices to 54,150. On the upside, resistance is seen at 56,750, with a potential test of 57,550 if momentum continues.

SELL COTTONCANDY JUL @ 56200 SL 56500 TGT 55800-55500. MCX

COCUDAKL

SELL COCUDAKL AUG @ 3170 SL 3200 TGT 3130-3100. NCDEX

KAPAS

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