The International Cotton Advisory Committee’s (ICAC) forecasts for the upcoming 2024–25 season caused a minor decline in cotton prices, which looks to have been reversed by short covering. Cotton candy prices are now up 0.13% to 61660. Global cotton output, commerce, consumption, and area are all expected to rise in the next years.

The market experienced immediate downward pressure amid forecasts of increasing supply, with estimates indicating a 3% increase in cotton-producing areas and a 2.5% increase in production. This feeling was, however, contradicted by the upward revision in cotton production predictions for the current season made by organizations such as the Cotton Association of India (CAI) and CCPC.

India’s forecasts for cotton production in 2023–2024 have been updated to reflect increased output despite initial apprehension. But for the next growing season, productivity is expected to slightly decline as farmers may choose to convert the area to higher-yielding crops.

On the other hand, increased worldwide demand for yarn and textiles is predicted to drive up mill consumption. Notably, the recent review of import duties on extra-long staple (ELS) cotton is anticipated to increase imports and impact market dynamics. Regionally, prices marginally increased in Rajkot, a significant spot market, indicating localized market dynamics.