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Cottoncandy

Cottoncandy prices settled lower by -0.2% at 59,040, tracking weakness in ICE prices due to slow demand and improved crop conditions. In the current kharif season, cotton acreage in India has decreased by approximately 9%, standing at 110.49 lakh hectares (lh) compared to 121.24 lh last year. The Cotton Association of India (CAI) expects the total acreage for the year to be around 113 lh, down from 127 lh the previous year. The drop in cotton acreage is attributed to farmers shifting to other crops due to lower yields and high production costs. Despite the reduced acreage, India's cotton exports have unexpectedly increased, with exports to Bangladesh rising from 15 lakh bales to 28 lakh bales due to strong demand. For 2023-24, India's cotton production and consumption are both estimated at 325 lakh bales. CAI also noted that the stock held by spinning mills, ginners, and Cotton Corporation of India totals around 60 lakh bales, with an additional 10 lakh bales expected to arrive during August and September. Globally, the 2024/25 cotton balance sheet reflects reduced production, consumption, and stocks, driven mainly by lower production in the U.S. and India. World ending stocks are down by 5 million bales from July to 77.6 million bales, with revisions also lowering estimates for the 2023/24 season. Technically, the market is under long liquidation, as open interest dropped by -4.49% to settle at 149 contracts. Cottoncandy finds support at 58,990, with further downside potentially testing 58,940 levels. Resistance is seen at 59,100, and a break above could push prices to test 59,160.

BUY COTTONCANDY SEP @ 58800 SL 58500 TGT 59300-59600. MCX

Cocudakl

SELL COCUDAKL SEP @ 3560 SL 3620 TGT 3500-3450. NCDEX

Kapas

SELL KAPAS APR @ 1630 SL 1645 TGT 1610-1600. NCDEX