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COTTONCANDY

Cotton prices, represented by Cottoncandy, rose by 1.05% to settle at 56,960 amid increased demand triggered by delays in shipments from major producers like the US and Brazil. This delay has bolstered demand for Indian cotton from mills in neighboring countries. Additionally, firm cottonseed prices have contributed to the strength in natural fiber prices, despite ongoing sowing activities for the kharif 2024 season in southern states like Karnataka, Telangana, and Andhra Pradesh, which have started receiving monsoon rains. In India, the dynamics of cotton planting are shifting regionally. Telangana is expected to see an increase in cotton acreage as some chilli farmers are likely to switch to cotton due to weaker prices in the spice crop. Conversely, North India is facing a potential decrease in cotton acreage due to challenges such as increased pest infestations and rising labor costs. Internationally, the US cotton projections for the 2024/25 season show higher beginning and ending stocks compared to previous forecasts, with stable production, domestic use, and exports. The global balance sheet for cotton in the same period reflects higher beginning stocks, production, and consumption, with world trade remaining unchanged. Ending stocks are projected to increase, influenced by adjustments in production and consumption across various regions. Technically, the Cottoncandy market is experiencing fresh buying momentum, with a notable 1.87% increase in open interest to settle at 382 contracts. Prices surged by 590 rupees, indicating strong bullish sentiment. Support levels are identified at 56,520, with potential downside to 56,070 if support is breached. Resistance is currently at 57,210, and a break above this level could see prices testing 57,450.

BUY COTTONCANDY JUL @ 56800 SL 56500 TGT 57200-57500. MCX

Cocudakl

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

Kapas

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