Cotton Gains As USDA Export Sales Rise 79% From The Previous Week

Yesterday’s 0.66% increase in cotton candy prices saw them settle at 57960. The USDA’s weekly export sales report, which revealed strong net sales for the 2023–2024 season, provided some bright news. With 146,100 running bales sold, net sales increased significantly from the previous week by 79% and from the prior four-week average by 64%.

For the 2024–25 season, the International Cotton Advisory Committee (ICAC) predicted rises in some indicators, such as the area used to produce cotton, production, consumption, and trade. The Cotton Association of India (CAI) updated its expectations for cotton production for the current season to 309.70 lakh bales, indicating a change from previous estimations, notwithstanding this positive prognosis.

On the other hand, ICE (NYSE: ICE) prices fell as mill demand decreased and supply was anticipated to rise. India’s forecasts for MY 2024–2025 for cotton production were down 2% due to expectations of a bigger crop and farmers’ shifting preferences towards higher return crops like pulses, maize, and paddy.

China is expected to import 2.4 million metric tonnes (MMT) of cotton in MY 2024–2025, mostly due to increased domestic and international demand for textile and apparel items. The rise in import predictions for both MY 2023/24 and MY 2024/25 was partly due to robust demand and availability of quotas, as well as a resurgence in textile and apparel exports.

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