Sell Cottoncandy Jul @ 56200 SL 56500 TGT 55900-55600. MCX - Kedia Advisory
COTTONCANDY
Cottoncandy prices closed marginally higher by 0.2% at 56,010 yesterday, supported by short covering after a recent decline triggered by expectations of abundant closing stocks for the 2024–25 season. According to the Cotton Association of India (CAI), India’s closing stocks are projected to rise sharply to 55.59 lakh bales, marking an 84% surge compared to last year’s 30.19 lakh bales. This increase reflects a bigger crop, with pressing numbers revised up to 311.40 lakh bales from the earlier 301.14 lakh bales estimate due to better output in key producing states. Total supply till end-June is pegged at 356.76 lakh bales, including significant imports of 30 lakh bales, a figure expected to grow to 39 lakh bales for the full season more than double last year’s 15.2 lakh bales. While domestic consumption is projected slightly higher at 308 lakh bales, exports are likely to remain muted at 17 lakh bales, down 40% from last year’s 28.36 lakh bales, highlighting weaker overseas demand. Stocks at the end of June stand at a comfortable 108.01 lakh bales, ensuring adequate supply for the coming months. Globally, the USDA’s latest balance sheet indicates higher production and ending stocks for 2025/26. U.S. output is forecast to reach 14.60 million bales, up 600,000 from June, while world production is lifted by 1.43 million bales, mainly on higher crops in China, the U.S., and Mexico. Ending stocks for 2025/26 are expected to rise by 520,000 bales globally despite a small uptick in consumption. Technically, the market witnessed short covering with a sharp 33.33% drop in open interest to just 12 lots while prices edged up by 110 rupees. Cottoncandy finds immediate support at 55500, while resistance is also pegged near 56500.
SELL COTTONCANDY JUL @ 56200 SL 56500 TGT 55900-55600. MCX
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