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Cottoncandy

Cotton prices edged up by 0.26%, settling at ?57,200, as concerns over reduced acreage in the current Kharif cropping season provided support. The Cotton Association of India (CAI) reported a significant decrease in cotton acreage, down by around 9% to 110.49 lakh hectares compared to 121.24 lakh hectares in the same period last year. The CAI expects the total acreage for this year to be around 113 lakh hectares, a notable drop from 127 lakh hectares in the previous year. This decline is primarily due to farmers shifting to other crops, driven by lower yields and the high cost of production. Further tightening of the cotton balance sheet is anticipated for next year, primarily due to increased exports to Bangladesh, which have surged from 15 lakh bales to 28 lakh bales due to strong demand. India's cotton production and consumption for 2023-24 are both estimated at around 325 lakh bales. The country is expected to export 28 lakh bales and import 13 lakh bales, with the 15 lakh bales gap being filled by last year's stocks. As of now, spinning mills hold 25 lakh bales in stock, while ginners and the Cotton Corporation of India have 15 lakh and 20 lakh bales, respectively. With another 10 lakh bales expected during August-September, around 70 lakh bales are available for consumption until September 30. Any delays in the new crop could tighten the supply situation for mills. Technically, the cotton market is experiencing short covering, with open interest remaining unchanged. Cotton prices are currently supported at ?57,110, with a potential test of ?57,030 if this level is breached. On the upside, resistance is expected at ?57,260, and a move above this could see prices testing ?57,330.

BUY COTTONCANDY SEP @ 57000 SL 56700 TGT 57500-57800. MCX

Cocudakl

SELL COCUDAKL SEP @ 3320 SL 3360 TGT 3260-3220. NCDEX

Kapas

SELL KAPAS APR @ 1595 SL 1610 TGT 1580-1570. NCDEX