As the harvest season went on, worries about demand from China the major consumer caused cotton candy to decline by -1.14%, to settle at 57300. Estimates of increasing imports have been prompted by India’s projected 7.5% reduction in cotton production for 2023–2024, which is mostly due to reduced planted area and weather effects from El Nino.
Citing decreased Texas yields, the USDA’s October WASDE report noted a reduction in U.S. cotton production to 12.8 million bales in 2023–2024. A major change in the dynamics of the cotton market is expected when Brazil’s production surpasses that of the United States for the first time and may perhaps surpass U.S. exports.
China was the recipient of a big increase in Australian cotton exports in August, a level of trade relations improvement marked by a substantial volume not seen since July 2014. Unlike previous industry projections and government estimations, the Cotton Association of India revised its 2022–2023 crop production estimate to 31.8 million bales. India further projects that the cotton season of 2023–2024 will yield between 330–340 lakh bales.
