Cotton candy prices rose by 0.25% to 55,610 due to concerns over India’s cotton production, which is forecasted to decline by 7.4% in 2024/25 to 30.2 million bales. The USDA revised India’s cotton production estimate to 30.72 million bales and reduced ending stocks to 12.38 million bales.
India’s cotton planting area has decreased significantly, with 110.49 lakh hectares sown this season, down from 121.24 lakh hectares last year.
This production shortfall is expected to impact India’s exports, which are projected to fall to 1.8 million bales, and imports, which are expected to rise to 2.5 million bales, supporting global prices.
However, weak yarn market demand and payment challenges could limit price gains. The USDA forecasts higher cotton production in countries like China, Brazil, and Argentina, offsetting declines in the U.S. and Spain.
