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Cottoncandy 

Cottoncandy prices experienced a decline of -0.45% yesterday, settling at 61580, as market sentiments were influenced by the International Cotton Advisory Committee's (ICAC) projections for the 2024-25 season. The ICAC forecasts an increase in cotton-producing area, production, consumption, and trade, with global cotton trade expected to grow by nearly 4%. Additionally, the Cotton Association of India (CAI) and the Cotton Corporation of India (CCI) revised their cotton production estimates upwards for the current season, reflecting ample supply expectations. However, despite the positive outlook for supply, ICE prices dropped amid lower demand from mills and increased supply expectations for the natural fiber. For the 2024/25 marketing year, India's cotton production is estimated to decrease by 2% due to farmers shifting acreage to higher-return crops. Conversely, mill consumption is expected to increase as yarn and textile demand improve in major international markets. Import estimates for India have also increased due to the recension of import duties on extra-long staple (ELS) cotton. In China, cotton imports for the 2024/25 marketing year are forecasted to increase on higher domestic and international demand for textile and apparel products. Despite stable planted area in Xinjiang, overall production is forecasted to decline due to decreasing planted area in other regions. From a technical standpoint, Cottoncandy market observed fresh selling, with a 1.13% increase in open interest to settle at 448 contracts, while prices declined by -280 rupees. Support levels are identified at 61400, with potential downside testing towards 61230, while resistance is anticipated at 61820, with a potential breakout leading to a test of 62070.

SELL COTTONCANDY MAY @ 61800 SL 62200 TGT 61400-61000. MCX

COCUDAKL

BUY COCUDAKL MAY @ 2580 SL 2540 TGT 2630-2680. NCDEX

KAPAS 

BUY KAPAS APR @ 1515 SL 1500 TGT 1535-1550. NCDEX