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Cottoncandy

Cottoncandy prices increased by 0.32% to settle at 56,730, supported by reduced cotton acreage in key Indian states and delayed shipments from major producers like the US and Brazil. The decline in cotton planting areas in Punjab, Haryana, and Rajasthan this year—10.23 lakh hectares compared to last year's 16 lakh hectares—has tightened supply. Specifically, Punjab's cotton area dropped to 97,000 hectares from a historical norm of 7.58 lakh hectares, Rajasthan's area fell to 4.75 lakh hectares from 8.35 lakh hectares, and Haryana's cotton acreage decreased to 4.50 lakh hectares from 5.75 lakh hectares. The reduction in cotton acreage in these regions, coupled with a firm trend in cottonseed prices, has bolstered cotton prices. Additionally, the onset of monsoon rains in Karnataka, Telangana, and Andhra Pradesh, where sowing for the kharif 2024 season has begun, is expected to boost cotton planting, especially in Telangana as farmers shift from less profitable crops like chillies. The US 2024/25 cotton projections indicate increased beginning and ending stocks, with the season-average upland farm price reduced to 70 cents per pound. Higher world ending stocks, now projected at 83.5 million bales, are due to increased production in Burma and higher consumption in Vietnam and Burma. In Rajkot, a major spot market, prices ended at 27,312.1 rupees, reflecting a 0.09% gain. Technically, the market is undergoing short covering, with open interest unchanged at 166. Prices have risen by 180 rupees, with support at 56,620 and a potential test of 56,500. Resistance is anticipated at 56,840, with a move above possibly testing 56,940.

BUY COTTONCANDY SEP @ 56500 SL 56200 TGT 57000-57400. MCX

Cocudakl

BUY COCUDAKL AUG @ 2860 SL 2820 TGT 2920-2960. NCDEX

Kapas

BUY KAPAS APR @ 1575 SL 1560 TGT 1595-1605. NCDEX