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Cotton prices settled down by 0.49% at 58,430 rupees per candy, primarily due to profit booking after previous gains. These earlier gains were driven by delays in cotton shipments from the US and Brazil, which boosted demand for Indian cotton from mills in neighboring countries. Additionally, a firm trend in cottonseed prices has supported natural fiber prices even as the kharif 2024 sowing season has commenced in southern states like Karnataka, Telangana, and Andhra Pradesh, following the onset of monsoon rains. There is an expectation that cotton acreage will increase in Telangana, where some chilli farmers may switch to cotton due to weak spice crop prices. Conversely, in North India, cotton acreage might drop by about 25% due to factors such as increased pest infestation in recent years and rising labor costs. The 2024/25 US cotton projections indicate higher beginning and ending stocks compared to the previous month, with projected production, domestic use, and exports remaining unchanged. The season average upland farm price has dropped by 4 cents from the May forecast to 70 cents per pound, following a decline in new-crop cotton futures. Globally, the 2024/25 cotton balance sheet shows increases in beginning stocks, production, and consumption, while world trade remains unchanged. Consequently, world ending stocks are projected to be 480,000 bales higher than in May, totaling 83.5 million. Technically, the market is experiencing long liquidation, with a drop in open interest by 0.54% to settle at 371, while prices decreased by 290 rupees. Currently, cotton candy has support at 58,380 rupees, with potential testing at 58,330 rupees if this support is breached. Resistance is likely at 58,490 rupees, with a move above this level potentially pushing prices to 58,550 rupees.

SELL COTTONCANDY JUL @ 58600 SL 59000 TGT 58200-57800. MCX

Cocudakl

SELL COCUDAKL JUL @ 2840 SL 2880 TGT 2770-2740. NCDEX

Kapas

SELL KAPAS APR @ 1610 SL 1625 TGT 1590-1580. NCDEX