Cotton did not change its profit booking position

Prices for cotton candy, which had previously been supported by variables impacting India’s cotton production, were at a halt at 57340 due to profit booking. According to projections, less planted acreage and the effects of El Nino weather will cause India’s cotton production to drop by 7.5% to 29.5 million bales in 2023–2024.

According to the Cotton Association of India (CAI), India’s import estimates increased to 2.2 million bales from 1.25 million bales the previous year. Although production and ending stocks are higher, the cotton balance sheet for 2023–2024 in the United States indicates somewhat lower demand. Reduced production within the state of Texas is balanced by increased production in other places.

Globally, the balance sheet shows increasing production and stocks but reduced consumption; the increase in beginning stocks can be attributed to India’s 2022–2023 production. The Cotton Association of India (CAI) has released its final estimate for the 2022–2023 season, which is 31.8 million bales, somewhat more than the earlier projection of 34.4 million bales.

In comparison, the sector estimates 29.9 million bales, while the government estimates 34.3 million. The entire production scenario is expected to be further affected by the 25% expected reduction in cotton production in north Maharashtra as a result of inadequate rainfall. Prices finished at 26908 Rupees in the Rajkot spot market, a significant cotton market, representing a -0.2% decline.

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