Cotton prices, represented by Cottoncandy, rose by 0.85% to settle at 56860, driven by the Cotton Association of India (CAI) revising its cotton production estimate for the current 2023/2024 season to 29.4 million bales. The revision is attributed to damage in Haryana caused by pink bollworm infestation and farmers uprooting plants.
Additionally, a significant 25% decline in cotton production is anticipated in north Maharashtra due to inadequate rainfall. The USDA's November World Agricultural Supply and Demand Estimates report increased the anticipated U.S. production in 2023/24 by 273,000 bales, raising global ending stocks by 1.6 million bales. The International Cotton Advisory Committee (ICAC) projected that global cotton production is likely to outpace consumption for the second consecutive year. Global cotton lint production is expected to grow by 3.25% year-on-year to 25.4 million metric tons in the 2023-2024 season, while consumption is forecasted to marginally decline to 23.4 million metric tons. Despite these factors, sluggish demand, as reflected in a 5-week low of global cotton bookings reported by Export Sales in the last week of November, exerted downward pressure on cotton futures.
From a technical standpoint, the market is undergoing fresh buying, with a 3.05% increase in open interest to settle at 169. Despite a price increase of 480 rupees, Cottoncandy finds support at 56580, with a potential test of 56290 below that level. On the upside, resistance is likely around 57080, and a move beyond could lead to a test of 57290.
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itsngoing to be more than or around 50%down.india.on whole is witnessing down trendLike 1