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Cotton candy prices increased by 0.4% to settle at 57,640 INR, primarily due to a significant decline in the area under cotton cultivation in Punjab, Haryana, and Rajasthan. These states reported a total of 10.23 lakh hectares under cotton, down from last year's 16 lakh hectares. Punjab saw only 97,000 hectares of cotton, a sharp decline from the normal 7.58 lakh hectares seen in the 1980s and 1990s. Similarly, the area under cotton in Rajasthan decreased from 8.35 lakh hectares last year to 4.75 lakh hectares this year, and in Haryana, it went down from 5.75 lakh hectares to 4.50 lakh hectares in 2024. Support for cotton prices also came from delays in shipments from the US and Brazil, increasing demand for Indian cotton from mills in neighboring countries. The 2024/25 U.S. cotton projections indicate higher beginning and ending stocks compared to last month, with projected production, domestic use, and exports remaining unchanged. However, the season average upland farm price is down 4 cents from the May forecast to 70 cents per pound due to a decline in new-crop cotton futures. Ending stocks are 400,000 bales higher at 4.1 million, or 28% of use. Globally, the 2024/25 cotton balance sheet shows increases in beginning stocks, production, and consumption, with world trade unchanged. World ending stocks are projected 480,000 bales higher than in May at 83.5 million. Technically, the market is under short covering with open interest remaining unchanged at 358 contracts while prices increased by 230 INR. Cotton candy is currently supported at 57,380 INR, with potential testing of 57,130 INR if prices fall below this level. Resistance is anticipated at 57,840 INR, and a move above this level could see prices testing 58,050 INR.

SELL COTTONCANDY JUL @ 58000 SL 58200 TGT 57600-57400. MCX

Cocudakl

SELL COCUDAKL AUG @ 3040 SL 3080 TGT 2980-2940. NCDEX

Kapas

SELL KAPAS APR @ 1610 SL 1625 TGT 1595-1580. NCDEX