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Cottoncandy

Cottoncandy prices settled up by 0.5% at Rs.58,610, supported by concerns over lower acreage in the current kharif season. Cotton acreage has dropped by 9% to 110.49 lakh hectares compared to 121.24 lakh hectares last year, as many farmers have shifted to other crops due to lower yields and high production costs. The Cotton Association of India (CAI) expects total acreage this year to be around 113 lakh hectares, down from 127 lakh hectares in the previous year. Exports to Bangladesh have also contributed to tightening cotton supply, with exports increasing from 15 lakh bales to 28 lakh bales this year due to strong demand. India's cotton production and consumption are both estimated at 325 lakh bales for 2023-24. With imports at 13 lakh bales, the gap of 15 lakh bales will be met by drawing down last year's stock. Currently, spinning mills hold around 25 lakh bales, ginners 15 lakh bales, and the Cotton Corporation of India has about 20 lakh bales, leaving 70 lakh bales available for consumption through September. On the global front, cotton production and consumption for 2024/25 have been revised downward, particularly in the U.S. and India, leading to a reduction in global ending stocks by 5 million bales to 77.6 million. Technically, the market witnessed short covering as open interest remained unchanged. Cottoncandy is seeing support at Rs.58,300, with a potential test of Rs.58,000 if breached. Resistance is expected at Rs.58,850, and prices could test Rs.59,100 if resistance is broken.

BUY COTTONCANDY SEP @ 58500 SL 58200 TGT 59000-59400. MCX

COCUDAKL

BUY COCUDAKL DEC @ 3050 SL 3000 TGT 3100-3140. NCDEX

KAPAS

BUY KAPAS APR @ 1610 SL 1590 TGT 1630-1640. NCDEX