Cotton Candy prices saw a slight increase of 0.09%, settling at 57,000. This rise comes as the USDA revised India’s cotton candy production forecast for the 2024-25 season down to 30.72 million bales due to crop damage from heavy rains and pest infestations. Ending stocks are also expected to drop to 12.38 million bales. While acreage under cotton has decreased by about 9%, improved yields from timely rains are anticipated to balance the impact.
India’s cotton exports for the 2023-24 crop year are projected to reach 28 lakh bales, up 80% from last year’s 15.5 lakh bales, driven by strong demand from countries like Bangladesh and Vietnam. Cotton consumption is estimated at 317 lakh bales for the year, with 291 lakh bales consumed by the end of August. Imports have also risen to 16.4 lakh bales, compared to 12.5 lakh bales in the previous year.
In the U.S., lower cotton production, mill usage, and exports have been reported for the 2024/25 season, mainly due to damage from Hurricane Helene. Meanwhile, global production is expected to rise, with increases in China, Brazil, and Argentina offsetting declines in the U.S. and Spain.
Technically, the market experienced fresh buying, with open interest increasing by 0.77% to 131 contracts. Prices are currently supported at 56,810, with potential to test 56,630 if they dip below this level. On the upside, resistance is set at 57,180, with a potential push toward 57,370 if breached. The market remains responsive to both domestic crop conditions and global demand.
