A downturn in China, the world’s top consumer, caused cotton candy to yesterday decline by 1.45% to 59920. The Cotton Association of India (CAI) kept the 311.18 lakh bale prediction for the cotton crop production for the 2022–23 season. The overall amount of cotton produced during the most recent cotton season was 307.05 lakh bales, according to a statement from CAI.
With arrivals of 296.80 lakh bales, imports of 11.50 lakh bales, and the opening stock projected by the CAI at 24 lakh bales at the start of the season, the total supply of cotton is expected to be 332.30 lakh bales from October 2022 to July 2023. In Punjab, arrivals were roughly one-third of the previous year (2021–2022). 8.7 lakh quintals of cotton have arrived in Punjab so far this year for the 2022–23 marketing season, compared to 28.89 lakh quintals for the entire 2021–22 marketing season.
According to the USDA’s weekly export sales report, net sales of cotton for 2023–2024 were 277,700 running bales, with rises mostly for China. Gujarat’s cotton farming has broken all previous records this Kharif season, which is a great accomplishment. Farmers in the state have successfully grown cotton on a sizable 26.64 lakh hectares of land, in sharp contrast to the pattern of falling cotton production seen in other significant cotton-producing states.
The price finished at 29208.4 Rupees in Rajkot, a significant spot market, falling by -0.05%. Technically, the market is in long liquidation as the open interest dropped by 10.93% to settle at 334 while prices fell by -880 rupees. Cotton candy is now receiving support at 59600, and a move below that level could result in a test of 59280 levels. Resistance is now expected to be seen at 60440, and a move above could result in prices testing 60960.
