Cottoncandy yesterday settled down by -0.23% at 59840 as economic concerns surrounding top buyer China clouded the demand outlook for the natural fiber. Global cotton production will likely decline next season (October 2023-September 2024) by three per cent, while consumption may remain stagnant and ending stocks could be lower. Cotton Association of India (CAI) maintained the cotton crop production forecast for the 2022-23 season at 311.18 lakh bales. The total cotton supply for October 2022 to July 2023 is estimated at 332.30 lakh bales, which consists of arrivals of 296.80 lakh bales, imports of 11.50 lakh bales and the opening stock estimated by the CAI at 24 lakh bales at the beginning of the season.
Arrivals in Punjab have been recorded at almost one-third of the previous year, 2021-22. In Punjab the arrival of cotton in the 2022-23 marketing season has been recorded at 8.7 lakh quintal till date this year, while it was 28.89 lakh quintal for the entire 2021-22 season. USDA weekly export sales report showed net sales of 277,700 running bales of cotton for 2023/2024, with increases primarily for China. During this Kharif season, cotton cultivation in Gujarat has achieved a remarkable milestone, surpassing the records of the past eight years. In Rajkot, a major spot market, the price ended at 28970.35 Rupees gained by 0.07 percent.
Technically market is under long liquidation as the market has witnessed a drop in open interest by -0.92% to settle at 324 while prices are down -140 rupees, now Cottoncandy is getting support at 59720 and below same could see a test of 59600 levels, and resistance is now likely to be seen at 59980, a move above could see prices testing 60120.