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Cotton prices, represented by Cottoncandy, rose by 1.1% to settle at 58,890 amid disruptions in shipments from major producers like the US and Brazil, boosting demand for Indian cotton from mills in neighboring countries. This uptick in prices was also supported by a firm trend in cottonseed prices, despite the ongoing sowing for the kharif 2024 season in southern states like Karnataka, Telangana, and Andhra Pradesh, which have started receiving monsoon rains. In India, the cotton acreage outlook for 2024 is mixed. While Telangana anticipates an increase in cotton planting due to shifts from other crops like chillies, North India faces challenges with decreased acreage attributed to pest issues and rising labor costs. Internationally, the US cotton projections for the 2024/25 season show higher beginning and ending stocks, with unchanged production, domestic use, and exports. The season average upland farm price is forecasted lower at 70 cents per pound due to declines in new-crop cotton futures. Global balance sheets for cotton in 2024/25 reflect increased beginning stocks, production, and consumption, with stable world trade. Ending stocks are projected higher at 83.5 million bales. Technically, the cotton market saw short covering as open interest dropped by -0.28% to 361 contracts, while prices surged by 640 rupees. Support levels for Cottoncandy are identified at 58,360, with potential downside testing at 57,830. Resistance is expected at 59,210, and a breakthrough above this level could lead to further gains toward 59,530. Investors and traders will continue to monitor these factors closely for potential impacts on future price trends in the cotton market.

BUY COTTONCANDY JUL @ 58200 SL 57800 TGT 58600-58800. MCX

Cocudakl

BUY COCUDAKL JUL @ 2860 SL 2820 TGT 2900-2940. NCDEX

Kapas

BUY KAPAS APR @ 1620 SL 1605 TGT 1640-1450. NCDEX