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Cotton candy prices settled down by 0.12% at 58,170, driven by expectations of favorable weather boosting supplies from key growing regions. However, the downside was limited due to delays in shipments from the US and Brazil, which has triggered demand for Indian cotton from mills in neighboring countries. A firm trend in cottonseed prices has also supported the market, 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 2024/25 US cotton projections show higher beginning and ending stocks compared to last month, with production, domestic use, and exports unchanged. The season average upland farm price is down 4 cents from the May forecast to 70 cents per pound due to a decline in new-crop cotton futures. Ending stocks are 400,000 bales higher at 4.1 million, or 28% of use. Globally, the 2024/25 cotton balance sheet shows increased beginning stocks, production, and consumption, with world trade unchanged. World ending stocks are projected 480,000 bales higher than in May at 83.5 million. The forecast for production is raised by 90,000 bales due to higher area and yield in Burma. Consumption is 80,000 bales higher with increases in Vietnam and Burma offsetting reductions elsewhere. In Rajkot, a major spot market, cotton prices ended at 27,673.95 Rupees, dropping by 0.04%. Technically, the market is under long liquidation with a drop in open interest by 0.27% to settle at 370, while prices are down by 70 rupees. Currently, cotton candy is getting support at 57,990, and a break below this level could see prices testing 57,810. Resistance is likely to be seen at 58,370, and a move above could see prices testing 58,570.

SELL COTTONCANDY JUL @ 58300 SL 58600 TGT 57900-57600. MCX

Cocudakl

BUY COCUDAKL AUG @ 2920 SL 2880 TGT 2970-3000. NCDEX

Kapas

BUY KAPAS APR @ 1590 SL 1580 TGT 1605-1615. NCDEX