As prices increased and the USDA reduced U.S. production, cotton fell on profit booking

Profit booking caused cotton candy to drop -0.54% to close at 58,700 after rising in response to the USDA’s October WASDE data. Citing reduced yields in Texas, the research reduced U.S. cotton production for 2023–2024 to 12.8 million bales. Fascinatingly, Brazil is on the verge of surpassing U.S. cotton exports for the first time since the 19th century, and its cotton production is predicted to top U.S. levels for the first time.

Benefiting from better trade relations, Australia saw a spike in cotton shipments to China in August, reaching 61,319 metric tons valued at $130 million. While still less than official projections, the Cotton Association of India raised its forecast for the 2022–2023 season to 31.8 million bales, from its previous estimate of 31.1 million bales.

India’s cotton crop for 2023–2024 is expected to produce 33–34 million bales. Telangana’s cotton area shrank as a result of adverse seasonal conditions. With regular rains expected, cotton picking is expected to pick up steam in the state during the second or third week of November. Cotton prices closed at 27,685.8 Rupees, down -0.23%, in Rajkot, a major spot market.

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