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Cotton Candy

Cotton candy prices saw a 0.43% decline, settling at 60,380, mainly due to concerns about demand from China, a key buyer in the cotton market. Meanwhile, the U.S. Department of Agriculture (USDA) reported that 31% of the cotton crop was in good to excellent condition, with a slight decline following Hurricane Idalia's passage. China's cotton production has been reduced to 5.9 million metric tons for 2023/24, primarily due to a decrease in planted area. Additionally, the USDA's August WASDE report lowered the production forecast by 2.7 million bales while increasing consumption by 500,000 bales. India has experienced a 3.65 lakh-hectare drop in sowing compared to the previous year, mainly due to poor rainfall and monsoon conditions in Gujarat. The closure of major mills and a low stock of old cotton crops have contributed to tight local supplies. The new cotton crop has started arriving in parts of North and South India, with prices hovering above the minimum support price (MSP) levels. It is expected that demand will gradually pick up, especially after September 15. Arrivals in Punjab have been recorded at almost one-third of the previous year, 2021-22. In Rajkot, a major spot market, cotton prices ended at 29,635.4 Rupees, gaining a marginal 0.01 percent. From a technical standpoint, the market has seen fresh selling, with open interest increasing by 3.26% to settle at 95 contracts. Prices decreased by 260 rupees. Support is expected at 60,280, potentially testing 60,190. On the upside, resistance may be seen at 60,480, with a potential move towards 60,590

SELL COTTONCANDY NOV @ 60600 SL 60900 TGT 60300-60000. MCX

COCUDAKL

SELL COCUDAKL DEC @ 2650 SL 2700 TGT 2600-2560. NCDEX

KAPAS

BUY KAPAS APR @ 1570 SL 1555 TGT 1588-1605. NCDEX

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