Price declines of -0.07% were observed in cotton candy yesterday, with the main cause being profit bookings following recent advances. The cotton candy price closed at 58560. Initial price increases were caused by worries about supply dynamics and long-term cotton use. All the same, the most recent U.S. cotton balance sheet shows lower ending stocks than the previous month, which adds to market volatility along with increased exports and reduced mill use.
With ending stocks now predicted to be 2.8 million bales, the export prediction has been updated to higher due to a rapid rate of shipments and sales. Globally, there is a decline in ending stocks of cotton due to lower beginning stocks and output, which in turn reduces global supplies. Even if global consumption is mostly unchanged, changes in consumption patterns have been noted among different nations.
Notably, the CAI continues to project domestic consumption and output for the 2023–2024 season. Reports indicate that pink bollworm infestation in cotton crops in India may be declining. Strong demand was indicated by the USDA’s weekly sales report, which showed that net sales for 2023–2024 increased by 69% from the previous week due mostly to strong demand from China and Vietnam.
The fact that exports have continuously outperformed forecasts and have reached a new marketing-year high suggests that there is a strong demand for cotton around the world. The market is under new selling pressure based on technical analysis, as open interest has increased by 0.96% while prices have decreased somewhat.
