Cotton benefited when the USDA reduced American production to 12.8 million bales in 2023–2024

The cotton market’s recent events show that a variety of factors affect price performance and the dynamics of world output. Due to USDA’s October WASDE report, which decreased U.S. cotton production for 2023–2024 to 12.8 million bales, cotton candy witnessed a 1.07% increase, closing at 58,820. Texas’s lower yields were the main cause of this.

The analysis highlights a noteworthy change in the cotton production landscape: in 2023–2024, Brazil is predicted to produce more cotton than the United States for the first time. Additionally, for the first time since the 19th century, Brazil is almost about to overtake U.S. cotton exports.

Cotton exports from Australia to China reached a record high of 61,319 metric tons in August, valued at $130 million, the highest level since July 2014. Increased trade between the two countries was the cause of this.

Domestically, the government’s forecast of 34.3 million bales was surpassed by the Cotton Association of India (CAI), which revised its crop production estimate for the 2022–2023 season, raising it marginally to 31.8 million bales. A variety of sources and stakeholders provided data for this revision.

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