Cotton fell after CAI increased its crop forecasts by two lakh bales

Cotton candy prices in India have dropped by 0.08% to ₹53,290 due to revised crop projections by the Cotton Association of India (CAI). The updated estimate is now at 304.25 lakh bales, 2 lakh bales higher than earlier forecasts, largely due to better-than-expected yields in Telangana.

However, cotton prices remain under pressure as the US Department of Agriculture raised global production and ending stock projections for the 2024/25 crop year, adding downward pressure. North India has seen a 43% decrease in Kapas arrivals, causing supply chain concerns and shortages of raw materials.

South India has seen increased cotton yarn prices due to rising demand from the garment sector and strong export orders. Total cotton supplies until December end were pegged at 176.04 lakh bales, with consumption estimates increasing by 2 lakh bales to 315 lakh bales for the 2024-25 season.

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