Cotton prices fell by -0.96% to 62040 due to profit-taking. Lower U.S. cotton predictions for 2023–2024 decreased production and ended inventories. U.S. production dropped by 334,000 bales to 12.1 million, with ending inventories reduced by 300,000 to 2.5 million. Despite this, upland producers maintained a projected 77.0 cents per pound price.
Global cotton supply and demand for 2023–2024 indicated increased commerce, output, and consumption, driven by China and India. Production rose slightly due to higher output in India, leading to increased global trade. However, ending inventories decreased, signaling a tighter market.
The Southern India Factories’ Association advised textile factories against panic-buying due to a recent spike in domestic cotton costs, rising from ₹55,300 to around ₹62,000 for the Shankar-6 variety. The Committee on Cotton Production and Consumption projected the current season’s production at 316.57 lakh bales, including 12 lakh bales from imports.
Domestic usage is estimated at 310 lakh bales. Despite export contracts and increased mill capacity utilization, concerns persist regarding export demand sustainability as domestic prices approach international levels. Cotton prices closed marginally lower at 29482.05 Rupees in Rajkot, a key spot market.
