Cotton declined as concerns about the slow milling demand persisted

Cotton candy dropped -0.11% to 56840 yesterday as the global market’s weak demand for yarn continues to raise concerns about the slow demand for milling. The drawback, meantime, seems to be minimal given the strong demand that buyers in Bangladesh and Vietnam, among other nations, continue to have for Indian cotton. In areas like Australia, there were hopes for a stronger crop.

Improvements in cotton-producing areas, production, consumption, and trade are anticipated for the 2024–25 season by the International Cotton Advisory Committee (ICAC). Due to decreased output and rising consumption, it is anticipated that India’s cotton inventories will decrease by almost 31% in 2023–2024, to their lowest point in over thirty years.

The world’s second-largest producer will have fewer exports during the current marketing year, which ends on September 30, due to lower stocks, supporting worldwide prices. Additionally, it might increase domestic prices and cut regional textile manufacturers’ margins. According to a statement from the Cotton Association of India (CAI), cotton stockpiles at the end of the 2023–2024 marketing year may drop below 2 million bales (340,000 metric tonnes).

According to the CAI, India is projected to produce 30.97 million cotton bales this season, a decrease from 31.89 million bales produced the previous year. It is anticipated that the nation’s consumption will rise from 31.10 million bales to 31.70 million bales this year. According to the CAI, India may export 2.20 million bales of cotton this season, up from 1.55 million bales the previous year.

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