Cottoncandy saw a small increase of 0.07%, ultimately settling at 56740, as a result of factors affecting cotton production worldwide. India, a major participant in the cotton market, is predicted to produce 29.5 million bales of cotton in 2023–2024, a 7.5% decrease from the previous year. Contributing variables mentioned include lower planted areas and the effect of El Nino climatic conditions on productivity.
The imports are expected to reach 2.2 million bales, up from 1.25 million bales the year before, according to the Cotton Association of India (CAI). The cotton balance sheet for 2023–2024 in the United States shows increased production and ending stocks but marginally decreased demand. It is anticipated that production will total 13.1 million bales, with 3.2 million bales in ending stocks, or 22.5% of utilisation.
For the same time period, the global balance sheet for cotton reveals increased output and stockpiles but decreased consumption. Global starting stockpiles are impacted by India’s revised increased 2022–2023 output. The final estimate from the CAI for the production of cotton in India in 2022–2023 is 31.8 million bales, which is a little more than the initial predictions.
This amount falls short of the government’s third advance forecast of 34.3 million bales. A 12.35% decline in open interest, which settled at 71, indicates that the market is technically experiencing short covering. On the down side, there may be a test at 56420, and support is located at 56580. An advance might take the price to 57060, while resistance is expected to be located at 56900.
