Cotton fell under profit booking

Prices for cotton candy dropped somewhat, by -0.27%, to settle at 58,460. This decline was mostly caused by profit bookings after a recent price rise. The decrease coincides with the CAI’s prediction that India’s cotton output for the 2023–2024 season will decrease by 7.5% to 29.5 million bales as a result of reduced planted area and the effects of El Nino weather.

In addition, the CAI pointed out that imports of cotton could rise from 1.25 million bales to 2.2 million bales in the current marketing year, which begins on October 1. The U.S. output estimate for 2023–2024 was dropped to 12.8 million bales in the USDA’s October WASDE report owing to lower yields in Texas, which is consistent with the declining trend in cotton production.

The prediction that Brazil’s cotton production would overtake that of the United States for the first time in 2023–2024 represents a significant change in the cotton landscape globally. Though the CAI marginally increased the forecast to 31.8 million bales for the 2022–2023 season, India’s cotton production is still less than the government’s projected 34.3 million bales. According to the Indian Cotton Federation, 33–34 million bales are expected to be produced in 2023–2024.

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