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Cottoncandy

Cottoncandy prices rose by 0.8% to settle at 55,620, driven by the USDA's lower-than-expected U.S. planting estimates. The USDA reported that U.S. all-cotton intended planting for 2025 is set at 9.8 million acres, a 12% decline from 2024, which fueled bullish sentiment in the market. Similarly, the Cotton Association of India (CAI) further reduced its 2024-25 crop estimate by 2% to 295.30 lakh bales due to a lower-than-expected crop in central India. The government also revised its second advance cotton crop estimate downward by 1.5% to 294.25 lakh bales. The cotton pressing estimate for Gujarat and Maharashtra declined by 4 lakh and 3 lakh bales, respectively, while Odisha saw a slight increase of 0.55 lakh bales. CAI expects cotton imports to double to 32 lakh bales this season, reflecting a significant rise from 15.20 lakh bales last season. Meanwhile, exports are forecasted to drop by 40% to 17 lakh bales, and closing stocks at the end of September 2025 are projected to be lower at 23.49 lakh bales. On the global front, Brazil’s 2024-25 cotton production is expected to increase by 1.6% to 3.7616 million tons, with a 4.8% expansion in planting area, signaling ample supply. However, mill buying remains limited as they are well-stocked. Technically, the market is under fresh buying, with open interest increasing by 2.7% to 228 contracts. Cottoncandy has immediate support at 55,380, with a potential test at 55,150, while resistance is at 55,760, and a breakout above could push prices toward 55,910.

BUY COTTONCANDY MAY @ 55400 SL 55000 TGT 55800-56000. MCX

COCUDAKL

SELL COCUDAKL APR @ 2910 SL 2950 TGT 2870-2850. NCDEX

KAPAS

SELL KAPAS APR @ 1475 SL 1485 TGT 1465-1455. NCDEX