Cotton Declined Due to Weak Milling Demand

Due to worries about weak milling demand amid a slowdown in yarn demand worldwide, cotton candy prices fell by 1% to close at 57700. The drawback was, however, minimal because purchasers in Bangladesh and Vietnam continued to have a high demand for India’s cotton.

For the upcoming season of 2024–2025, the International Cotton Advisory Committee (ICAC) has predicted increases in the area used to produce cotton and in output, consumption, and trade. India’s cotton stockpiles are predicted to fall by around 31% in 2023–2024, to their lowest point in over thirty years due to decreased output and increased consumption.

India is expected to produce 25.4 million 480-pound bales of cotton in the marketing year (MY) 2024–2025. This is a two percent decline from the previous year due to farmers switching acreage to higher-return crops. Nonetheless, an increase of two percent is anticipated in mill consumption, mostly due to the strengthening demand for textiles and yarn in significant global markets.

Extra-long staple (ELS) cotton import taxes have been reviewed, which is expected to result in a 20 percent increase in imports. The increased local and worldwide demand for textile and apparel items is expected to result in 2.4 million metric tonnes (MMT) of cotton imports into China for the 2024–2025 millennium. This comes after the demand for imported cotton has increased and textile and garment exports have rebounded.

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