Cotton declined as 1.3 million fewer bales were consumed globally in 2023–2024

The price of cotton candy, a vital product for the world’s textile sector, dropped by -0.03% to settle at 57720. Predictions for the 2023–2024 era show lower global consumption of cotton, especially in major cotton-producing countries like India, Indonesia, Pakistan, Uzbekistan, and Turkey. This reduction coincides with significant changes in the global cotton market.

Higher world-ending stocks for 2023–2024 further put downward pressure on prices because they were fueled by higher beginning stocks and output in addition to reduced consumption. The cotton industry in India appears stable as CAI kept their projections for domestic consumption and production for the 2023–24 season.

In spite of this, the intricate market environment is influenced by global factors such as Brazil’s historically high cotton production in the 2022–2023 season and reports of pink bollworm infestation affecting cotton harvests. Shipments of Brazilian cotton fluctuated, a reflection of more general issues with worldwide demand in the face of poor economic circumstances. Furthermore, according to ICAC predictions, global cotton production is expected to surpass world consumption for the second year in a row.

Although 3.25% annual growth in production is anticipated, a slight fall in consumption is predicted, suggesting a possible overstock in the market. The price of cotton candy in Rajkot’s main spot market closed at 26745.6 Rupees, slightly down by -0.1%. A 3.8% increase in open interest despite a -20 rupee price fall indicates that, from a technical perspective, the market is seeing new selling pressure.

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