Cotton Gains After Exports Increase From Previous Week’s USDA Weekly Sales Report

The USDA’s weekly sales data showed that cotton candy was in strong demand, as evidenced by its 1.32% gain at 58320. In comparison to the previous week, net sales for 2023/2024 increased by 69% to 349,400 running bales, above the four-week average by 37%. Strong demand especially from China and Vietnam helped exports hit a new milestone for the marketing year at 396,700 bales.

Global production was forecast to rise by 260,000 bales in January compared to December, according to the USDA’s WASDE report. China and Argentina were expected to produce greater crops. The Cotton Association of India (CAI) kept pressing projections at 294.10 lakh bales, but maintained its estimate for domestic consumption at 311 lakh bales for the 2023–24 season.

Based on information from trade sources and state associations that grow cotton, the CAI made its observations. Even so, there has been a noticeable decrease in the percentage of pink bollworm infestation in cotton harvests, from 30.62% in 2017–18 to 10.80% in 2022–2023. For the cotton business, this encouraging trend in infestation is significant.

November 2022 had a 5.5% decline in Brazilian cotton shipments compared to October 2023, but a 12% increase from October 2023 to 253.71 thousand tones. Prices closed with a gain of 0.11% at 26801.4 Rupees on the main trading center of Rajkot. With a 7.74% increase in open interest to settle at 376, Cotton candy technically is under new buying.

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