Cottoncandy prices rose by 0.55% to 53,500, despite an upward revision in India’s cotton production estimate. The Cotton Association of India (CAI) revised the production forecast slightly higher to 291.35 lakh bales, primarily due to improved yields in Odisha.
However, 8 lakh bales lowered consumption estimates to 307 lakh bales, and exports were revised down to 15 lakh bales for the 2024-25 season. Despite higher production, import volumes increased by 27.5 lakh bales by April, indicating domestic supply tightness.
Ending stocks are expected to increase to 32.54 lakh bales, suggesting weakening domestic demand or stockpiling strategies. The USDA’s June WASDE report trimmed 2025-26 production estimates by over 800,000 bales, with cuts in India, the U.S., and Pakistan outweighing gains in China.
Global consumption is forecasted to be lower by 300,000 bales, with declines in India, Bangladesh, and Turkiye pushing global ending stocks down by 1.6 million bales to 76.80 million bales.
