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COTTONCANDY

Cottoncandy prices edged higher by 0.19% to close at Rs.53,150, driven by short covering after recent declines triggered by a marginal upward revision in India’s cotton production estimates. The Cotton Association of India (CAI) raised the 2024–25 production estimate slightly to 291.35 lakh bales (of 170 kg each), up from 291.30 lakh bales, with Odisha contributing to the higher output. However, this modest increase contrasts with declining consumption and exports, painting a mixed demand-supply picture. CAI's latest April report revised cotton consumption downward by 8 lakh bales to 307 lakh bales and trimmed export projections by 1 lakh bale to 15 lakh bales, significantly lower than the previous season’s 28.36 lakh bales. Meanwhile, cotton imports have surged, with 27.5 lakh bales imported by April, compared to just 15.2 lakh bales in the previous season. Consequently, ending stocks are expected to rise to 32.54 lakh bales by September 2025, higher than the 30.19 lakh bales recorded in the 2023–24 season. Globally, the U.S. cotton balance sheet for 2024/25 also reflected a bearish tilt, with a 100,000-bale reduction in exports and an equivalent rise in ending stocks. World production is slightly down due to reductions in Argentina and Cote d’Ivoire, partially offset by gains in China. Technically, the market is under short covering as open interest dropped by 1.39% to 71 contracts. Support lies at Rs.53,100, with further downside to Rs.53,050. Resistance is seen at Rs.53,200, and a breakout could push prices toward Rs.53,250.

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

COCUDAKL

SELL COCUDAKL JUL @ 3150 SL 3190 TGT 3110-3080. NCDEX

KAPAS

SELL KAPAS APR @ 1600 SL 1610 TGT 1590-1580. NCDEX