When compared to the current season (October 2023–September 2024), global cotton production is expected to decline by 3%, while consumption may remain flat and ending inventories may be lower. Cotton candy closed yesterday at 59980, up 0.1%. Concerns about a slowdown in China, the world’s biggest buyer, limit upside potential.
According to the Cotton Association of India (CAI), 311.18 lakh bales of cotton will be produced during the 2022–23 growing season. The CAI has assessed the opening stock at 24 lakh bales at the start of the season, bringing the overall supply of cotton for the period from October 2022 to July 2023 to 332.30 lakh bales, which includes arrivals of 296.80 lakh bales, imports of 11.50 lakh bales, and other factors.
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.
A significant spot market in Rajkot saw the price conclude at 29183.35 Rupees, up 0.08 percent. Technically, the market is being shorted as open interest has decreased by 2.1% to settle at 327 while prices have increased by 60 rupees. Cottoncandy is currently receiving support at 59800 and a move below that level could result in a test of 59630 levels. Resistance is now expected to be seen at 60240, and a move above could result in prices testing 60510.
