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COTTONCANDY

Cotton prices closed slightly lower yesterday, down by -0.18% to settle at 56,100, influenced by delays in shipments from major producers like the US and Brazil, which spurred demand for Indian cotton from mills in neighboring countries. This demand dynamic, coupled with a firm trend in cottonseed prices, supported natural fiber prices despite ongoing kharif 2024 season sowing in southern states of India. In India, the agricultural landscape is shifting with expectations of increased cotton acreage in Telangana due to some chili farmers transitioning to cotton amidst weaker prices for spices. Conversely, North India may see a reduction in cotton acreage due to challenges such as increased pest infestation and rising labor costs, impacting planting decisions. Internationally, the US cotton projections for 2024/25 show higher beginning and ending stocks, with unchanged production, domestic use, and exports. However, the season average upland farm price declined to 70 cents per pound, reflecting changes in new-crop cotton futures and adjustments in export estimates and ending stocks. On a global scale, the 2024/25 cotton balance sheet indicates increased beginning stocks, production, and consumption, with world trade remaining unchanged. Ending stocks are projected higher at 83.5 million bales due to adjustments in production and consumption figures across key producing regions like Burma, Vietnam, and others. Technically, the cotton market is experiencing long liquidation with open interest unchanged at 368 contracts while prices declined by -100 rupees. Currently, support for Cottoncandy is seen at 55,760, with a potential downside test towards 55,410. Resistance is likely at 56,480, and a break above could lead prices towards 56,850.

BUY COTTONCANDY JUL @ 56200 SL 55800 TGT 56600-56800. MCX

Cocudakl

BUY COCUDAKL JUL @ 2720 SL 2680 TGT 2760-2800. NCDEX

Kapas

BUY KAPAS APR @ 1560 SL 1545 TGT 1580-1600. NCDEX