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Cottoncandy

Cottoncandy settled down by -0.12% at 56,790 due to profit booking after initial support from declining cotton acreage in Punjab, Haryana, and Rajasthan. These states reported a total of 10.23 lakh hectares under cotton, significantly down from last year’s 16 lakh hectares. Punjab saw a reduction to 97,000 hectares, far below the 7.58 lakh hectares in the 1980s and 1990s. Similarly, Rajasthan's cotton area dropped from 8.35 lakh hectares last year to 4.75 lakh hectares this year, and Haryana saw a decrease from 5.75 lakh hectares to 4.50 lakh hectares in 2024. Further support for Cottoncandy came from delays in shipments from the US and Brazil, triggering demand for Indian natural fiber from neighboring mills. A firm trend in cottonseed prices is also sustaining natural fiber prices, even as sowing for the Kharif 2024 season begins in southern states like Karnataka, Telangana, and Andhra Pradesh, which have started receiving monsoon rains. The trade expects increased cotton acreage in Telangana as some chili farmers shift to cotton due to weak spice crop prices. The 2024/25 US cotton projections indicate higher beginning and ending stocks, with production, domestic use, and exports unchanged. The season average upland farm price dropped by 4 cents to 70 cents per pound. Ending stocks are 400,000 bales higher at 4.1 million. Globally, the 2024/25 balance sheet shows increased beginning stocks, production, and consumption, with world ending stocks projected 480,000 bales higher at 83.5 million. In Rajkot, a major spot market, the price ended at 27,282.4 Rupees, dropping by -0.22%. Technically, the market is under fresh selling with a gain in open interest by 0.58% to settle at 172 as prices fell by -70 rupees. Cottoncandy finds support at 56,600, with a potential test of 56,400 levels. Resistance is expected at 57,000, with prices potentially testing 57,200 if surpassed.

BUY COTTONCANDY SEP @ 56400 SL 56000 TGT 56800-57000. MCX

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BUY COCUDAKL AUG @ 2840 SL 2800 TGT 2890-2940. NCDEX

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