Cotton candy prices experienced a decline of -0.68%, reaching 58540, reflecting the trends observed in ICE (NYSE:ICE) prices. This decrease can be attributed to factors such as an increase in certificated stocks, diminishing demand, and a growing world carryover. Despite a notable increase in USDA weekly export sales, concerns regarding a potentially better crop in countries like Australia limited the upward momentum for cotton prices. The International Cotton Advisory Committee (ICAC) has projected increases in cotton-producing area, production, consumption, and trade for the upcoming season, 2024-25, indicating a potentially larger global supply.

In India, the Cotton Association has revised production estimates upwards for the current season, citing increased crop production expectations. However, for MY 2024/25, cotton production is forecasted to decrease by two per cent, with farmers expected to allocate acreage to higher-return crops. Conversely, China's cotton imports for MY 2024/25 are expected to rise due to higher domestic and international demand for textile and apparel products. This follows a rebound in exports of textile and apparel products and increased demand for imported cotton.

From a technical standpoint, the cotton candy market witnessed long liquidation, with open interest remaining unchanged at 416 contracts, while prices declined by -400 rupees. Support for Cotton candy is identified at 58160, with a potential test of 57780 levels below that. Resistance is expected at 59060, and a move above could lead to testing the 59580 mark. Market participants are closely monitoring global production trends, consumption patterns, and trade dynamics for further insights into cotton price movements.