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COTTONCANDY

Cottoncandy prices settled marginally lower by 0.04% at Rs.53,980, reflecting mild profit booking after recent gains. The price movement followed a revised domestic crop estimate by the Cotton Association of India (CAI), which further trimmed production forecasts for the 2024–25 season by 4 lakh bales to 291.30 lakh bales of 170 kg each, primarily due to reduced output in Maharashtra. The downward revision in output reflects tighter domestic supply conditions, supporting a generally firm undertone in cotton prices despite the current correction. CAI estimates the total cotton supply till the end of March at 306.83 lakh bales, which includes 25 lakh bales of imports and opening stocks of 30.19 lakh bales. Stocks as of March-end stood at 127.83 lakh bales, with 27 lakh held by mills and the remainder distributed between CCI, the Maharashtra Federation, and private trade. Notably, India’s cotton imports are projected to more than double in 2024–25 to 33 lakh bales from last season’s 15.20 lakh bales, reflecting the need to compensate for lower domestic production. Exports, however, are forecast to decline to 16 lakh bales, down significantly from 28.36 lakh bales last year, indicating a cautious trade outlook. Globally, the U.S. and world cotton balance sheets show lower exports and consumption, while stocks have been revised upwards. Mill use is down in China and Indonesia, whereas Turkey saw increases. Technically, the market is under long liquidation, with open interest remaining unchanged at 241. Support lies at Rs.53,600, with further downside possible toward Rs.53,230. Resistance is seen at Rs.54,270, and a break above could test Rs.54,570.

SELL COTTONCANDY MAY @ 54200 SL 54500 TGT 53900-53700. MCX

COCUDAKL

SELL COCUDAKL JUN @ 2980 SL 3020 TGT 2940-2900. NCDEX

KAPAS

SELL KAPAS APR @ 1600 SL 1610 TGT 1590-1580. NCDEX