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Yesterday, Cotton Candy prices increased by 0.44% to settle at 58,800. This rise was driven by delays in shipments from the US and Brazil, which spurred demand for Indian cotton from mills in neighboring countries. Additionally, strong cottonseed prices have supported the fiber's market value. Despite the ongoing sowing for the Kharif 2024 season in southern Indian states like Karnataka, Telangana, and Andhra Pradesh, which have begun receiving monsoon rains, cotton prices remained firm. In Telangana, an increase in cotton acreage is anticipated as some chili farmers are expected to switch to cotton due to weak prices of chili. Conversely, in North India, cotton planting is projected to drop by about 25% due to factors such as increased pest infestations and rising labor costs. The 2024/25 U.S. cotton projections indicate higher beginning and ending stocks compared to the previous month, with production, domestic use, and exports remaining unchanged. Ending stocks are now 400,000 bales higher at 4.1 million, accounting for 28% of use. Globally, the 2024/25 cotton balance sheet shows increases in beginning stocks, production, and consumption, with world trade remaining unchanged. World ending stocks are projected to be 480,000 bales higher than in May at 83.5 million. Production forecasts have been raised by 90,000 bales due to higher area and yield in Burma. Consumption is also up by 80,000 bales, with increases in Vietnam and Burma offsetting reductions elsewhere. Technically, the market is under short covering, with unchanged open interest at 373 and prices up by 260 Rupees. Cotton Candy is supported at 58,640, with a potential test of 58,490 if prices decline. Resistance is anticipated at 58,920, and a move above this level could see prices testing 59,050.

BUY COTTONCANDY JUL @ 58500 SL 58200 TGT 5900-59400. MCX

Cocudakl

SELL COCUDAKL JUL @ 2880 SL 2920 TGT 2830-2780. NCDEX

Kapas

SELL KAPAS APR @ 1620 SL 1640 TGT 1600-1590. NCDEX