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Cotton 

Cotton prices for Cottoncandy remained unchanged at 57980 yesterday, influenced by expectations of favorable weather bolstering supplies from key growing regions. Despite this, downside potential was limited due to delays in shipments from major producers like the US and Brazil, which spurred demand for Indian cotton from mills in neighboring countries. The firm trend in cottonseed prices also lent support to natural fiber prices. In India, the start of monsoon rains in southern states like Karnataka, Telangana, and Andhra Pradesh has initiated sowing for the kharif 2024 season, although cotton acreage in North India is expected to decline due to factors such as increased pest infestations and rising labor costs. This shift in agricultural dynamics reflects changing economic considerations for farmers, especially those transitioning from other crops like chillies to cotton. Internationally, the US cotton projections for the 2024/25 season indicate higher beginning and ending stocks compared to previous forecasts, with stable production, domestic use, and exports. However, the season average upland farm price has decreased slightly to 70 cents per pound following declines in new-crop cotton futures. Similarly, global balance sheets show increased beginning stocks, production, and consumption, leading to higher world ending stocks at 83.5 million bales for 2024/25. Technical analysis suggests that the cotton market is currently experiencing long liquidation, with open interest unchanged at 369 while prices remained steady. Key support levels for Cottoncandy are identified at 38660, with potential downside testing at 19330, whereas resistance is expected at 38660, with a potential breakout targeting lower levels.

SELL COTTONCANDY JUL @ 58200 SL 58500 TGT 57800-57600. MCX

Cocudakl

SELL COCUDAKL AUG @ 3100 SL 3140 TGT 3050-3020. NCDEX

Kapas

SELL KAPAS APR @ 1620 SL 1635 TGT 1600-1590. NCDEX