Profit taking caused by worries about China’s demand, a significant buyer, caused cotton candy prices to end the day down by -0.23% at 60,840. The estimates for cotton in the United States for 2023–2024 show higher initial stockpiles but decreased production, exports, and ending stocks. High beginning stocks for 2022–2023 were also a result of unexpectedly huge warehouse stocks in July 2023.
The United States’ projected production for 2023–2024 decreased by 860,000 bales, mostly in the Southeast and Southwest. While exports fell by 200,000 bales, consumption stayed the same as in August, lowering ending inventories by 100,000 bales. Upland cotton’s season-average price in 2023–24 is anticipated to increase by 1% to 80 cents per pound.
The projected global cotton output, consumption, trade, and ending stocks for 2023–2024 are all lower than they were last month. Due to poor monsoon conditions in Gujarat, mill closures, and a dearth of old cotton harvests, cotton seeding in India has fallen by 3.65 lakh hectares from the previous year.
In some areas of North and South India, the fresh cotton crop has begun to arrive at rates higher than the minimum support price (MSP). After September 15, more visitors are anticipated. By the second or third week of November, Telangana’s cotton harvest is expected to pick up steam.
