As supply forecasts increased, cotton prices declined

As the new harvest season gets underway, increased supply forecasts caused cotton candy prices to fall by -0.73% to settle at 59,540. Increased arrivals as a result will put pressure on prices. India’s cotton exports experienced difficulties in 2022–2023 and decreased to a record low of 15.50 lakh bales.

However, the downside is anticipated to be contained because of a lower production outlook, with a decline of 8%–10% from the prior year. Cotton production and quality for the crop in 2023–24 may be impacted by North India’s pink bollworm damage and extended dry period. Reduced output and consumption are a problem for the cotton business globally.

The output, exports, and ending inventories of cotton in the United States are expected to decline in 2023–2024. In the growing seasons of 2023–2024, India is anticipated to produce between 330–340 lakh bales of cotton. Northern states are seeing a rise in cotton harvesting. In Rajkot, a significant spot market, market prices finished at 28,184.25 Rupees, down by -0.84%.

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