Cotton candy prices saw a 0.26% increase, closing at 60,700, driven by reports of pink bollworm infestation in Haryana’s cotton belt. The global cotton industry faces production and consumption reductions in the 2023-24 outlook. In the U.S., projections for 2023/24 include lower cotton production, exports, and ending stocks. Beginning stocks for 2022/23 were also increased due to large warehouse stocks, affecting projections. India’s cotton sowing dropped by 3.65 lakh hectares due to poor monsoon conditions in Gujarat, mill closures, and low stock of old cotton crops.
New cotton crops have started arriving, with prices above the minimum support price. Cotton picking is gaining momentum in some Indian states, and the market expects increased arrivals after September 15. Telangana’s cotton area decreased due to unfavorable conditions, but picking is expected to accelerate in November. The pre-sowing price forecast for cotton in 2023-24 anticipates normal rainfall and expanded crop area. In the Rajkot spot market, prices closed at 29,181.45 Rupees, down by -0.01%.
Technically, the cotton candy market witnessed fresh buying with a 1.01% increase in open interest, settling at 100 contracts. Support is at 60,400, with potential testing of 60,110, while resistance is at 60,980, with a move above possibly testing 61,270.
Source : Investing.com