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Cottoncandy

Yesterday, cotton prices settled up by 0.05% at 56,500, driven by profit booking after initial support from reduced cotton acreage in key Indian states. Punjab, Haryana, and Rajasthan have reported a total of 10.23 lakh hectares under cotton, a significant decline from last year's 16 lakh hectares. Punjab saw a dramatic reduction to 97,000 hectares, and Rajasthan's area under cotton dropped from 8.35 lakh hectares to 4.75 lakh hectares. Similarly, Haryana's cotton area decreased from 5.75 lakh hectares to 4.50 lakh hectares in 2024. The delayed arrival of shipments from the US and Brazil has triggered increased demand for Indian cotton from neighboring countries. A firm trend in cottonseed prices is also supporting natural fiber prices, even as sowing for the kharif 2024 season has commenced in southern states like Karnataka, Telangana, and Andhra Pradesh, which have started receiving monsoon rains. Telangana might see increased cotton acreage as some chilli farmers shift to cotton due to weak chilli prices. The 2024/25 US cotton projections show higher beginning and ending stocks compared to last month, with unchanged production, domestic use, and exports. The season average upland farm price dropped by 4 cents to 70 cents per pound. Ending stocks are now projected 400,000 bales higher at 4.1 million. Revisions to the 2023/24 US cotton balance sheet include a 500,000-bale reduction in exports and a 450,000-bale increase in ending stocks. Globally, the 2024/25 cotton balance sheet indicates higher beginning stocks, production, and consumption, with ending stocks projected 480,000 bales higher than May at 83.5 million. Technically, the market is under short covering with unchanged open interest at 168, while prices rose by 30 rupees. Cotton is supported at 56,270, with further support at 56,040 levels. Resistance is anticipated at 56,690, with a potential move above this level testing prices at 56,880.

BUY COTTONCANDY SEP @ 56400 SL 56100 TGT 56800-57200. MCX

Cocudakl

BUY COCUDAKL SEP @ 3000 SL 2960 TGT 3040-3080. NCDEX

Kapas

BUY KAPAS APR @ 1565 SL 1550 TGT 1585-1600. NCDEX