The price of cotton showed tenacity during yesterday’s trading session, ending the day up 0.62% at 58680. The recent U.S. cotton balance sheet for the 2023–2024 season, which showed decreased ending stocks, increased exports, and stable output, is responsible for the upward trend. With a strong rate of shipments and sales, the export projection was increased to 12.3 million bales, which helped to lower ending stockpiles, which were anticipated to be 2.8 million bales or 20% of the total disappearance.
Production projections and closing stocks for the cotton market were adjusted on a global scale. Lower beginning stocks and output caused an almost 700,000 bale drop in global ending stocks, while consumption remained stable despite regional variances. Reductions in other major importing countries such as India, Pakistan, Thailand, and Turkey were countered by a notable increase in imports from China.
Due to robust demand from China and Vietnam, the USDA’s weekly sales report for 2023–2024 showed a sharp increase in net sales and exports, with recent figures showing that shipments regularly above 200,000 bales. Furthermore, the Cotton Association of India (CAI) upheld projections for domestic production and demand for the 2023–24 season, demonstrating the resilience of the cotton market in India.
Positive production news was bolstered by reports of reduced pink bollworm infection in cotton crops across the nation. Due to tiny variations in local trade, prices in Rajkot closed the day marginally down at 26826.35 Rupees on the spot market. With prices up by 360 rupees and open interest rising by 6.12%, the market appears to be seeing fresh purchasing from a technical standpoint.
