Cotton gains on some concerns over supply from key U.S. growing regions.

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Cotton gains on some concerns over supply from key U.S. growing regions.

Cotton candy saw a 0.56% increase, settling at 61400, driven by concerns over supply from vital U.S. growing regions. The U.S. Department of Agriculture (USDA) reported a slight dip in cotton crop conditions (31% in good to excellent condition) following Hurricane Idalia. In China, heavy rainfall in Xinjiang could affect cotton quality and quantity, contributing to a reduction in cotton production for 2023/24. 

The USDA's August WASDE report adjusted production and consumption figures, with a decrease of 2.7 million bales in production and a 500,000 bales increase in consumption for 2023/24. India's cotton sowing dropped by 3.65 lakh hectares due to poor monsoon conditions, mill closures, and low stock of old cotton crops, leading to tight local supplies. 

Fresh buying activity is observed in the market, with a 1.09% increase in open interest and a 340 rupees price increase. Support levels for Cotton candy are projected at 61180, with potential testing at 60960. Resistance is expected at 61560, with potential price testing at 61720.

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