Cotton prices increased as the USDA reduced U.S. production in 2023–2024

The latest trading session saw cotton candy futures rise noticeably by 0.41%, ending at 58,620. This rise can be attributable to important changes in the cotton market, as described in the USDA’s October WASDE report. According to the analysis, American cotton production will be much lower in 2023–2024, with a projected output of 12.8 million fewer bales.

The USDA report’s prediction that Brazil’s cotton production will for the first time ever surpass that of the United States in 2023/24 is one of its most remarkable findings. Brazil is also predicted to be close to surpassing U.S. cotton exports, which would represent a substantial departure from historical patterns extending back to the 19th century.

In August, Australia’s cotton exports to China rose significantly, reaching 61,319 metric tones worth $130 million. A final estimate for the cotton harvest in 2022–2023 was also made public by the Cotton Association of India (CAI), which increased its initial estimate of 34.4 million bales to 31.8 million bales.

This was different from the government’s third advance projection of 34.3 million bales for the 2022–2023 season and the industry’s output projection of 29.9 million bales for the prior season. The complexity of effectively forecasting cotton production is demonstrated by CAI’s updated estimate, which incorporates data from numerous sources and stakeholders.

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