Cotton Gain as CCI procured 32.81 lakh bales of cotton so far this season

Cotton candy prices rose 0.87% to 62520, boosted by good developments in domestic and worldwide markets. The Cotton Corporation of India (CCI) reported significant cotton procurement, especially from Telangana, Andhra Pradesh, and Maharashtra, indicating strong domestic demand.

Furthermore, the Cotton Association of India (CAI) raised its cotton production predictions for the current season, predicting higher output levels than originally expected. This upward change in output expectations boosted market optimism. Despite the strong domestic forecast, ICE (NYSE: ICE) prices fell due to higher global supply expectations for cotton and reduced demand from mills.

Cotton Australia, on the other hand, increased its output projections, citing excellent weather conditions, and emphasizing the international market’s conflicting feelings. Cotton estimates in the United States indicated decreased production and ending stockpiles, pointing to tighter supply conditions.

On the domestic front, the Southern India Mills’ Association (SIMA) warned against panic buying of cotton, citing recent price increases and encouraging mills to be cautious. The increase in mill capacity utilization and the jump in export contracts demonstrated that Indian cotton continues to be in high demand in the international market.

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