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COTTONCANDY

Cottoncandy futures edged higher by 0.18% to settle at Rs.54,500, supported by short covering after recent declines. The modest price recovery came despite a marginal upward revision in India’s cotton production estimates for the 2024–25 season, with the Cotton Association of India (CAI) raising output to 291.35 lakh bales from 291.30 lakh bales due to increased production in Odisha. CAI’s April report cut the cotton consumption estimate by 8 lakh bales to 307 lakh bales, highlighting sluggish demand from the domestic textile industry. Moreover, exports have been downgraded by 1 lakh bale to 15 lakh bales for the season, significantly lower than last year's 28.36 lakh bales. Meanwhile, imports remained steady at 33 lakh bales, with 27.5 lakh bales already imported by April — more than double the previous season's levels. As a result, India’s ending stocks are projected to increase to 32.54 lakh bales by September 30, 2025, up from 30.19 lakh bales the previous year. On the global front, the U.S. cotton balance sheet showed a minor 100,000-bale reduction in exports and a corresponding rise in ending stocks, with the average farm price unchanged. Globally, cotton production, consumption, and trade forecasts were trimmed, while ending stocks saw a net rise due to weaker demand from China and Indonesia. Technically, the market witnessed fresh buying with a 1.35% rise in open interest to 75 lots. Support is seen at Rs.54,000, while resistance also stands at the same level — a breakout above may push prices toward Rs.55,000 again, indicating range-bound momentum.

SELL COTTONCANDY JUL @ 54700 SL 55000 TGT 54300-54100. MCX

COCUDAKL

SELL COCUDAKL JUN @ 3065 SL 3100 TGT 3025-2975. NCDEX

KAPAS

SELL KAPAS APR @ 1580 SL 1590 TGT 1570-1560. NCDEX