Cotton candy prices saw pressure from lower global consumption predictions for the 2023–2024 season, but they ended the day up 0.76% at 55,660 thanks to low-level buying. Turkey, Pakistan, India, Indonesia, and Uzbekistan are expected to have lower consumption expectations, which accounts for the predicted drop of 1.3 million bales.
Nevertheless, a rise in global ending stocks of 2.0 million bales for 2023–2024 driven by increased beginning stocks, output, and decreased consumption brought support to the market. The Cotton Association of India (CAI) kept their projections for the amount of cotton consumed domestically in 2023–2024 at 311 lakh bales. At 294.10 lakh bales, the pressing estimates for the same season remained unchanged.
Due to increased productivity and cultivation, Brazil produced an unprecedented amount of cotton in the 2022–2023 season. Despite rising global supply, low demand and difficult economic conditions resulted in bloated stockpiles and falling cotton prices globally. There was little solace when reports emerged of a decrease in pink bollworm infestation in the Indian cotton crop.
From 30.62% in 2017–18 to 10.80% in 2022–2023 was the infestation decrease. November 2023 had a 12% increase in Brazilian cotton shipments over October 2023, but a 5.5% reduction over November 2022. As far as the technical picture goes, open interest is still at 198 and the market is witnessing short covering.
