IGI Logo

Cottoncandy prices rose by 0.81% to settle at 58250, driven by delays in shipments from major producers like the US and Brazil, which increased demand for Indian cotton among mills in neighboring countries. This surge in demand, coupled with firm cottonseed prices, supported natural fiber prices despite the onset of sowing for the kharif 2024 season in southern states of India following monsoon rains. The cotton acreage outlook in India presents a mixed picture: while Telangana anticipates an increase in cotton planting due to shifts from other crops like chillies amidst weak prices, North India faces challenges such as pest infestations and rising labor costs, potentially reducing acreage by about a quarter. Internationally, the US cotton market projections for 2024/25 show higher beginning and ending stocks with unchanged production, domestic use, and exports. However, the season average upland farm price is down to 70 cents per pound due to declining new-crop cotton futures. Globally, the 2024/25 cotton balance sheet indicates increased beginning stocks, production, and consumption, with higher world ending stocks projected at 83.5 million bales. In Rajkot, a key spot market, cotton prices edged up marginally to 27001.25 Rupees, reflecting steady trading sentiment locally despite global market fluctuations. Technically, Cottoncandy market conditions suggest short covering, evidenced by a 2.43% drop in open interest to settle at 362 contracts while prices increased by 470 rupees. Support levels are identified at 57940, potentially testing 57620 on the downside, while resistance is expected at 58440, with a potential breakout towards 58620. Market participants will closely monitor weather patterns, crop progress, and international trade dynamics to gauge future price movements amidst evolving demand and supply conditions.

BUY COTTONCANDY JUL @ 58000 SL 57700 TGT 58400-58600. MCX

Cocudakl

BUY COCUDAKL JUL @ 2840 SL 2800 TGT 2880-2920. NCDEX

Kapas

BUY KAPAS APR @ 1615 SL 1600 TGT 1630-1640. NCDEX