Cotton candy prices rose slightly by 0.18% to 54,500, but bearish fundamentals remain. The Cotton Association of India (CAI) revised India’s 2024-25 cotton production to 291.35 lakh bales, attributed to higher output in Odisha.
However, sluggish domestic consumption, exports, and ending stocks are weighing on the outlook. India’s cotton consumption estimate was reduced by 8 lakh bales to 307 lakh bales, and export projections downward by 1 lakh bales to 15 lakh bales.
Cotton imports have surged, with 27.5 lakh bales imported by April, indicating a stronger reliance on global supply. Ending stocks are expected to rise to 32.54 lakh bales by September 2025.
The USDA trimmed U.S. cotton exports by 100,000 bales and raised ending stocks to 5 million bales. Worldwide, production and trade were reduced while stocks increased, driven by lowered mill use in China and Indonesia.
