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Cotton

Cotton candy prices settled down by 0.27% at 56310 INR, driven by profit booking after recent gains. The decline in prices is partly due to the significant reduction in cotton acreage in Punjab, Haryana, and Rajasthan, which collectively reported 10.23 lakh hectares under cotton compared to last year's 16 lakh hectares. Punjab saw a notable drop to 97,000 hectares from the normal 7.58 lakh hectares seen in the 1980s and 1990s. Despite the decline in acreage, support for cotton prices is coming from the delayed arrival of shipments from the US and Brazil, triggering demand for Indian cotton from mills in neighboring countries. The USDA's 2024/25 US cotton projections indicate 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 from the May forecast to 70 cents per pound, following a decline in new-crop cotton futures. Globally, the 2024/25 cotton balance sheet shows increased beginning stocks, production, and consumption, with unchanged world trade. World ending stocks are projected 480,000 bales higher than in May at 83.5 million. In Rajkot, a major spot market, the price ended at 27674.25 INR, dropping by 0.26 percent. Technically, the market is under long liquidation, witnessing a 13.4% drop in open interest to settle at 265 contracts, while prices fell by 150 INR. Currently, cotton candy is getting support at 56140 INR, with further support potentially at 55970 INR. Resistance is likely at 56590 INR, and a move above could see prices testing 56870 INR.

BUY COTTONCANDY JUL @ 56200 SL 55800 TGT 56700-57000. MCX

Cocudakl

SELL COCUDAKL AUG @ 3020 SL 3060 TGT 2960-2920. NCDEX

Kapas

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