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COTTONCANDY

Cottoncandy prices slipped by 0.28% to settle at 53,000 amid weak demand fundamentals and marginally higher domestic production estimates. The Cotton Association of India (CAI) revised India’s cotton output for 2024–25 marginally upward to 291.35 lakh bales (170 kg each) from 291.30 lakh bales, primarily due to increased production in Odisha. However, demand-side pressures weighed heavier on sentiment, with the CAI cutting its cotton consumption forecast by 8 lakh bales to 307 lakh bales and lowering export estimates by 1 lakh bale to 15 lakh bales. Imports have surged to 33 lakh bales, more than double the previous season, further adding to domestic stock burdens. Ending stocks are projected to rise to 32.54 lakh bales by September 2025, up from 30.19 lakh bales last season, reinforcing oversupply concerns. Globally, the USDA’s June WASDE report painted a mixed outlook. While world production for 2025–26 was lowered by over 800,000 bales, consumption also fell by 300,000 bales. A significant 1-million-bale reduction in India’s 2024–25 crop lowered global beginning stocks, bringing down ending stocks for 2025–26 to 76.80 million bales. In the U.S., the 2025–26 cotton crop is forecast at 14 million bales—the second smallest in a decade—due to delayed planting and adverse weather in the Delta region. Technically, the market is under long liquidation, with open interest down by 1.41% to 70. Prices remain range-bound at 53,000. Immediate support lies at 53,000, with a break possibly testing the same level again. Resistance is also capped at 53,000; a sustained move above could open the path toward higher levels.

SELL COTTONCANDY JUL @ 53200 SL 53500 TGT 52900-52600. MCX

COCUDAKL

SELL COCUDAKL JUL @ 3190 SL 3240 TGT 3140-3100. NCDEX

KAPAS

SELL KAPAS APR @ 1595 SL 1605 TGT 1580-1570. NCDEX