Cotton fell during the profit booking

Following previous support from India’s predicted 7.5% reduction in cotton production for 2023–2024, profit booking caused the cotton market to marginally decline by -0.28% to settle at 57340. This drop was caused by elements like reduced planted areas and the effects of El Nino weather.

The Cotton Association of India (CAI) predicts that imports would reach 2.2 million bales, up from 1.25 million bales in the previous year. The cotton balance sheet for 2023–2024 in the United States reveals somewhat lower demand but increasing production and ending stockpiles.

Lower consumption but increased output and stockpiles are shown in the global balance sheet for cotton for the same time period. The CAI reports that India increased its production by 300,000 bales in 2022–2023.

In contrast to the government’s third advance estimate of 34.3 million bales, there is a significant difference in the organization’s final estimate for the 2022–2023 season, which is somewhat higher at 31.8 million bales. Insufficient rainfall in North Maharashtra might result in a 25% decrease in cotton production, perhaps reaching 15 lakh tons. Cotton prices declined to 26908 Rupees, a -0.2% reduction, in Rajkot, an important spot market.

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