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Cottoncandy prices saw a decline of -0.23%, settling at 61980, influenced by revised production estimates and increased supply expectations in the cotton market. The Cotton Association of India (CAI) and Cotton Corporation of India (CCPC) both revised their cotton production estimates upwards for the current season, reflecting expectations of higher production levels. Additionally, Cotton Australia raised its production estimate for Australian cotton, further adding to supply projections. Despite lower production forecasts for the United States, global cotton supply is anticipated to increase, driven by higher production in India. However, increased consumption and trade are expected to offset some of the surplus, leading to slightly lower ending stocks globally. Amidst these dynamics, the Southern India Mills’ Association (SIMA) cautioned against panic buying of cotton by textile mills in the southern states, as domestic cotton prices experienced significant hikes in recent weeks. The association highlighted the fast approaching international prices and emphasized the need for prudent purchasing decisions. In the spot market, prices in Rajkot dropped by -0.33%, reflecting the downward pressure in cotton prices. Technically, the market witnessed long liquidation, with a decrease in open interest by -0.47% and prices falling by -140 rupees. Key support for Cottoncandy is identified at 61900, with a potential test of 61810, while resistance is expected at 62060, with a breakout possibly leading to a test of 62130.

SELL COTTONCANDY MAY @ 62000 SL 62400 TGT 61600-61400. MCX

BUY COCUDAKL APR @ 2620 SL 2570 TGT 2680-2730. NCDEX

BUY KAPAS APR @ 1540 SL 1520 TGT 1560-1570. NCDEX