Cotton candy prices edge up on short covering.

Cotton candy prices rose slightly by 0.1 per cent to Rs 59920 after a previous decline. This uptick is likely due to short covering, a temporary buying strategy by traders who had previously bet on falling prices.

The International Cotton Advisory Committee (ICAC) predicts a positive outlook for the upcoming season, with increases in production, consumption, and trade. However, this optimism is countered by concerns about higher supply and lower mill demand.

In India, cotton production is expected to be strong in the current season but decrease slightly next year as farmers switch to more profitable crops. Conversely, mill consumption is forecast to rise due to increased international demand for textiles.

China, a major cotton importer, is expected to see rising imports driven by strong textile demand. Technically, the market experienced short covering, suggesting a temporary pause in the downward trend. Prices face resistance at Rs 60100 and support at Rs 59760. A break below support could see prices test Rs 59610.