Cottoncandy prices declined by 0.45%, settling at ₹53,670 due to bearish sentiment from the WASDE report, which projected higher production and ending stocks for the 2024/25 crop year. Global cotton production is forecasted to rise by 1.2 million bales to 117.4 million, driven by larger crops in India and Argentina. However, North Indian states reported a sharp 43% decline in kapas arrivals until November 30, creating raw material shortages for ginners and spinners. The Cotton Association of India (CAI) estimates cotton consumption for 2024/25 at 313 lakh bales, with pressing estimates unchanged at 302.25 lakh bales.
Cotton imports are expected to rise significantly to 25 lakh bales, up by 9.8 lakh bales from the previous year. By November 30, about 9 lakh bales had arrived at Indian ports. Closing stocks for 2024/25 are projected at 26.44 lakh bales, lower than last year’s 30.19 lakh bales. Globally, the December estimate for U.S. all-cotton production rose to 14.3 million bales, while world production increased to 117.4 million bales. World consumption is up by 570,000 bales, led by India, Pakistan, and Vietnam, offsetting a reduction in China. Meanwhile, exports are slightly higher, with notable increases in Brazil, Benin, and Cameroon.
Technically, the market is witnessing long liquidation as open interest dropped by 19.29% to 297. Prices are supported at ₹53,490, with a potential downside to ₹53,300. Resistance is seen at ₹53,940, and a break above this level could test ₹54,200.