The price of cotton candy saw slight increases, closing at 59920, mostly due to short covering after a prior decline in price amid hopes for better harvest conditions in nations like Australia. For the forthcoming season, 2024–2025, the International Cotton Advisory Committee (ICAC) predicted increases in several indicators, including the area used to produce cotton, production, consumption, and trade.
But even with these bullish forecasts, ICE (NYSE: ICE) prices fell as a result of expected increased supply and decreased mill demand. The Cotton Corporation of India (CCI) and the Cotton Association of India (CAI) updated their projections for cotton production for the current season, demonstrating strong output growth.
However, because farmers are switching land to other crops that give higher yields, India’s cotton production is expected to decline by 2% during the marketing year (MY) 2024–2025. On the other hand, it is anticipated that mill consumption will rise by 2% due to stronger demand for textiles and yarn in significant global markets.
The increased demand for domestically and internationally textile and apparel products is expected to propel China’s cotton imports to 2.4 million metric tonnes (MMT) in MY 2024–2025. Likewise, output in Xinjiang is anticipated to stay constant while decreasing in other areas.
