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Cottoncandy prices settled down marginally by 0.03% at 57,980 due to expectations of favorable weather conditions boosting supplies from key growing regions. However, the downside was limited by delays in shipments from the US and Brazil, which has triggered demand for Indian cotton from mills in neighboring countries. The 2024/25 US cotton projections indicate higher beginning and ending stocks compared to last month. Although projected production, domestic use, and exports remain unchanged, the season average upland farm price has been reduced by 4 cents to 70 cents per pound following a decline in new-crop cotton futures. Ending stocks are projected to be 400,000 bales higher at 4.1 million, accounting for 28% of use. Revisions to the 2023/24 US cotton balance sheet include a 500,000-bale reduction in exports to 11.8 million due to the slowing pace of export shipments, a 50,000-bale increase in domestic use, and a 450,000-bale gain in ending stocks. Globally, the 2024/25 cotton balance sheet shows increased beginning stocks, production, and consumption, with world trade unchanged. This results in world ending stocks being projected 480,000 bales higher than in May at 83.5 million. The forecast for production has been raised by 90,000 bales based on higher area and yield in Burma, while consumption is 80,000 bales higher, with increases in Vietnam and Burma offsetting reductions elsewhere. In Rajkot, a major spot market, the price ended at 27,690.8 rupees, down by 0.31%. Technically, the market is under long liquidation as open interest remained unchanged at 369 while prices declined by 20 rupees. Cottoncandy is currently getting support at 57,920, and a break below could test 57,860 levels. On the upside, resistance is likely at 58,020, with a potential move to test 58,060.

SELL COTTONCANDY JUL @ 58200 SL 58500 TGT 57800-57600. MCX

Cocudakl

BUY COCUDAKL AUG @ 3080 SL 312 TGT 3030-3000. NCDEX

Kapas

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