Prices for cotton candy decreased by 0.12% to $58170 due to forecasts for good weather that will increase supply from important growing locations. The negative impact was, however, mitigated by a delay in Brazilian and US supplies, which led to a demand for Indian cotton from mills in nearby nations. Furthermore, stable cottonseed prices are bolstering cotton prices even as southern states like Telangana, Karnataka, and Andhra Pradesh have started to plant for the Kharif 2024 season after the start of monsoon rains.
Telangana’s cotton acreage is predicted to increase since some chili farmers may move to cotton due to the low price of chilies. On the other hand, because of a rise in labor expenses and an increase in insect infestations in recent years, cotton acreage in North India may decrease by almost 25%. In contrast to last month, the US cotton predictions for 2024–2025 show larger beginning and ending stockpiles, while output, domestic usage, and exports remain unchanged.
A decrease in new-crop cotton futures has caused the season average upland farm price to drop 4 cents from the May prediction to 70 cents per pound. Ending stockpiles are expected to represent 28% of usage, or 400,000 bales higher at 4.1 million. The cotton balance sheet for 2024–2025 indicates higher initial stocks, production, and consumption globally, while world commerce remains steady.
Global ending stocks are predicted to reach 83.5 million, 480,000 bales more than in May. Because of Burma’s higher area and yield, production predictions have increased by 90,000 bales. Cotton ended the day at 27661.6 rupees, down 0.15% on the Rajkot spot market.
