Cotton prices held steady at 55600, indicating market stability, according to the Cotton Association of India (CAI). According to CAI, domestic cotton consumption will remain unchanged at 311 lakh bales for the 2023–24 season. The season’s pressing estimates remain at 294.10 lakh bales. The observations of the CAI are based on information provided by other trade sources as well as members of 11 state associations that grow cotton. Up till the end of the 2023–24 season, 345 lakh bales of cotton are anticipated to be produced worldwide.
Global supply has increased as a result of Brazil’s historically high cotton production in the 2022–2023 season, which was fueled by greater cultivation and productivity. However, low demand brought on by poor economic circumstances has resulted in bloated stockpiles and lower cotton prices globally. Certain concerns have been allayed by reports of a decrease in pink bollworm infestation in Brazilian cotton crops.
November 2023 had a 12% increase in Brazilian cotton shipments over October 2023, but a 5.5% reduction from November 2022. The International Cotton Advisory Committee (ICAC) believes that for the second year in a row, the world’s cotton production will exceed its consumption. In the 2023–2024 season, it is anticipated that global cotton lint production would increase by 3.25% year over year to 25.4 million metric tons, while consumption will slightly decrease to 23.4 million metric tons.
The cotton balance sheet for the 2023–2024 season in the United States reveals somewhat lower consumption, higher production, and ending stockpiles. Lower demand but increasing output and stockpiles are also factors on global cotton balance sheets. With unchanged open interest at 208 and stable prices at 0 rupees, the market is technically in a long liquidation phase.
