Prices for cotton candy dropped by 0.43% to settle at 60,380, primarily because of worries about China’s demand as a major cotton market consumer. In the meantime, according to the U.S. Department of Agriculture (USDA), 31% of the cotton crop was in good to excellent condition, with a little reduction following the passage of Hurricane Idalia.
Due mostly to a decrease in planted area, China’s cotton production has decreased to 5.9 million metric tonnes during 2023–2024. Additionally, the August WASDE report from the USDA increased consumption by 500,000 bales while decreasing the production forecast by 2.7 million bales. Cotton prices decreased due to concerns about Chinese demand.
Due mostly to inadequate rainfall and unfavorable monsoon conditions in Gujarat, India saw a 3.65 lakh hectare decrease in sowing from the previous year. Local supplies are scarce as a result of the closure of significant mills and a limited stock of old cotton crops. Prices are hovering above the minimum support price (MSP) levels as the fresh cotton harvest has begun to arrive in several regions of North and South India.
Demand should gradually increase, particularly after September 15. In Punjab, arrivals were recorded at just under one-third of the year before (2021–2022). A significant spot market in Rajkot saw cotton prices close the day at 29,635.4 Rupees, up just 0.01 percent.
