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Cottoncandy

Cotton prices edged up by 0.09% to settle at 57,050, reflecting a tight supply situation and reduced acreage in the current Kharif cropping season. The cotton acreage has declined by around 9% to 110.49 lakh hectares compared to 121.24 lakh hectares in the same period last year. The Cotton Association of India (CAI) anticipates the total acreage for the year to be around 113 lakh hectares, down from 127 lakh hectares in the previous year. The shift in crops by farmers, driven by lower yields and high production costs, has contributed to this decline in acreage. The CAI also highlighted a tighter balance sheet for the upcoming season, primarily due to higher-than-expected exports to Bangladesh, which have surged from 15 lakh bales to 28 lakh bales. India's cotton production and consumption for 2023-24 have been consistent at around 325 lakh bales. However, with exports at 28 lakh bales and imports at 13 lakh bales, the gap of 15 lakh bales will reduce last year's stock. In terms of stock, spinning mills currently hold 25 lakh bales, ginners have around 15 lakh bales, and the Cotton Corporation of India has about 20 lakh bales. With another 10 lakh bales expected in August-September, the total available stock for consumption up to September 30 is 70 lakh bales. However, any delay in the new crop could tighten the supply for mills. Technically, the cotton market is experiencing short covering, with open interest remaining unchanged at 176 contracts while prices increased by 50 rupees. Cotton is currently supported at 57,000, with potential downside testing at 56,950 levels. On the upside, resistance is expected at 57,100, and a move above this level could see prices testing 57,150.

BUY COTTONCANDY SEP @ 56900 SL 56500 TGT 57400-57800. MCX

Cocudakl

SELL COCUDAKL SEP @ 3320 SL 3360 TGT 3260-3220. NCDEX

Kapas

SELL KAPAS APR @ 1595 SL 1610 TGT 1580-1570. NCDEX