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Cottoncandy prices settled down by 0.12% at 58170, influenced by expectations of favorable weather boosting supplies from key growing regions. However, the downside was limited due to a delay in shipments from the US and Brazil, which triggered demand for Indian cotton from mills in neighboring countries. Additionally, firm cottonseed prices are supporting cotton prices even as sowing for the Kharif 2024 season has begun in southern states like Karnataka, Telangana, and Andhra Pradesh following the onset of monsoon rains. In Telangana, cotton acreage is expected to rise as some chili farmers may switch to cotton due to weak chili prices. Conversely, in North India, cotton acreage might drop by about 25% due to increased pest infestations in recent years and rising labor costs. The 2024/25 US cotton projections indicate higher beginning and ending stocks compared to last month, with production, domestic use, and exports unchanged. The season average upland farm price is down 4 cents from the May forecast to 70 cents per pound, influenced by a decline in new-crop cotton futures. Ending stocks are projected to be 400,000 bales higher at 4.1 million, or 28% of use. Globally, the 2024/25 cotton balance sheet shows increased beginning stocks, production, and consumption, with world trade unchanged. World ending stocks are projected to be 480,000 bales higher than in May at 83.5 million. Production forecasts are up by 90,000 bales due to higher area and yield in Burma. In the Rajkot spot market, cotton prices ended at 27661.6 rupees, down by 0.15%. Technically, the market is under long liquidation with a 0.27% drop in open interest to settle at 370, and prices down by 70 rupees. Cottoncandy now has support at 57990, with a potential test of 57810 levels, and resistance at 58370, with a move above potentially testing 58570.

SELL COTTONCANDY JUL @ 58300 SL 58600 TGT 57900-57600. MCX

Cocudakl

BUY COCUDAKL AUG @ 2920 SL 2880 TGT 2970-3000. NCDEX

Kapas

BUY KAPAS APR @ 1590 SL 1580 TGT 1605-1615. NCDEX