Prices for cotton candy fell by -0.66% to settle at 57100, mostly due to persistent concerns about demand. The Cotton Association of India (CAI) predicts that reduced planted acreage and productivity issues brought on by El Nino weather patterns will result in a 7.5% decrease in India’s cotton production for the 2023–2024 season, hitting 29.5 million bales.
Potential supply restrictions are indicated by the fact that import predictions for the current marketing year indicate an increase to 2.2 million bales, up from 1.25 million bales the previous year. The U.S. cotton balance sheet for 2023–2024 indicates a minor decline in demand on a global scale, but increased production and ending stockpiles. Market sentiment is impacted by worries about weaker consumption and bigger ending stockpiles, which account for 22.5% of use, despite a 273,000 bale gain in production.
The government’s estimate of 34.3 million bales and the industry’s estimate of 29.9 million bales for the same season in India are both somewhat lower than the CAI’s final estimate of 31.8 million bales for the cotton crop production in 2022–2023. Estimates indicate that the usual yearly production of 20 lakh tons of cotton in north Maharashtra is anticipated to drop to 15 lakh tons due to low rainfall, a 25% loss.
Price fall of -0.23% was observed in Rajkot’s main spot market, where prices closed at 26967.75 Rupees. With a 4.1% increase in open interest to close at 127, the market is technically under new selling pressure. A breach below might test 57090, with prices down -380 rupees. Support is located at 57100. If prices break past the anticipated resistance at 57120, they may test 57130 on the upside.
