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Cottoncandy prices rose by 0.24% to 58740, driven by delayed shipments from the US and Brazil, which triggered demand from mills in neighboring countries for Indian cotton. Firm cottonseed prices are supporting the natural fiber prices even as kharif 2024 sowing has begun in the southern states of Karnataka, Telangana, and Andhra Pradesh with the onset of monsoon rains. An increase in cotton acreage is anticipated in Telangana, where some chili farmers are expected to switch to cotton due to weak spice crop prices. Conversely, North India may see a decrease in cotton acreage by about 25% due to rising pest infestations and labor costs. The 2024/25 U.S. cotton projections show higher beginning and ending stocks compared to the previous month, with production, domestic use, and exports unchanged. The season average upland farm price is down 4 cents to 70 cents per pound, influenced by a decline in new-crop cotton futures. Ending stocks are projected 400,000 bales higher at 4.1 million, representing 28% of use. For the 2023/24 U.S. cotton balance sheet, a 500,000-bale reduction in exports to 11.8 million is noted due to a slower pace of export shipments, alongside a 50,000-bale increase in domestic use and a 450,000-bale gain in ending stocks. Globally, the 2024/25 cotton balance sheet indicates increased beginning stocks, production, and consumption, with world trade remaining unchanged. World ending stocks are projected to be 480,000 bales higher than in May at 83.5 million, with production raised by 90,000 bales due to higher area and yield in Burma. Consumption is 80,000 bales higher, driven by increases in Vietnam and Burma. Technically, the market is under short covering with a 1.06% drop in open interest to settle at 372, while prices increased by 140 Rupees. Support for Cottoncandy is seen at 58510, with a potential test of 58280 levels if breached. Resistance is likely at 58970, with prices possibly testing 59200 if they move higher.

BUY COTTONCANDY JUL @ 58500 SL 58200 TGT 59000-59300. MCX

Cocudakl

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

Kapas

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