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Cotton prices, represented by Cottoncandy, edged up by 0.12% to settle at 58,960 amidst a delay in shipments from major producers like the US and Brazil, stimulating demand for Indian cotton from mills in neighboring countries. The firm trend in cottonseed prices further supported natural fiber prices, despite ongoing sowing activities for the kharif 2024 season in states like Karnataka, Telangana, and Andhra Pradesh, benefiting from early monsoon rains. In India, shifts in agricultural dynamics are anticipated: Telangana may see increased cotton acreage as some chili farmers pivot to cotton due to weak prices in the spice crop. Conversely, North India faces challenges with a potential 25% decrease in cotton acreage due to pest issues and rising labor costs, impacting early plantings. Internationally, the US cotton projections for 2024/25 indicate higher beginning and ending stocks, despite unchanged production, domestic use, and exports. The forecasted farm price decreased to 70 cents per pound, influenced by declines in new-crop cotton futures. Global cotton balance sheets for 2024/25 show increased beginning stocks, production, and consumption, with higher world ending stocks projected at 83.5 million bales, reflecting adjustments in trade dynamics and regional consumption trends. In the spot market at Rajkot, a significant trading hub, cotton prices closed higher at 27,368.65 Rupees, marking a 0.42% increase, highlighting local market dynamics and price trends. Technically, Cottoncandy observed fresh buying interest with a 1.94% rise in open interest to 368 contracts, alongside a price increase of 70 rupees. Current support levels for Cottoncandy are identified at 58,570, with a potential downside test towards 58,190. Resistance is anticipated at 59,490, and a breakout above this level could push prices towards 60,030.

SELL COTTONCANDY JUL @ 59000 SL 59300 TGT 58600-58300. MCX

Cocudakl

SELL COCUDAKL JUL @ 2880 SL 2930 TGT 2820-2780. NCDEX

Kapas

SELL KAPAS APR @ 1625 SL 1640 TGT 1605-1590. NCDEX