Cotton candy, a symbol for cotton prices, closed at 57300, up 0.53%, as traders struggled with worries about short-term supply constraints. Deliverable against contracts, certified cotton stockpiles fell significantly from 87,770 bales on December 1st to 6,325 bales on December 5th, according to ICE statistics.
This stock market fall increased market anxiety. 253.71 thousand tons of Brazilian cotton were shipped in November, a 12% rise from October but a 5.5% reduction from November 2022. world cotton production is expected to exceed world consumption for the second year in a row, according to projections made by the International Cotton Advisory Committee (ICAC).
While consumption is predicted to slightly fall to 23.4 million metric tons, global cotton lint production is predicted to increase by 3.25% year over year to 25.4 million metric tons in the 2023–2024 season. Conversely, weak demand, which was seen in a 5-week low in global cotton bookings for the final week of November, drove down cotton futures.
The Cotton Association of India (CAI) increased their forecast for 2023–2024 cotton production to 29.4 million bales. Farmers uprooting plants and the harm caused by pink bollworm infestations in Haryana are two factors. Due to little rainfall, cotton production in North Maharashtra is predicted to significantly reduce by 25%.
