Cotton prices rose by 0.48% to 58620 due to expectations of a 7.5% decrease in India's cotton production for 2023/24. Lower planting and El Nino weather are impacting productivity. Import projections for India indicate an increase to 2.2 million bales in the current marketing year, up from 1.25 million bales in the previous year, according to the Cotton Association of India (CAI). The USDA's October report suggests reduced cotton production in the U.S. due to lower yields in Texas.
Brazil is expected to surpass the U.S. in cotton production for the first time, and Australia's cotton exports to China have surged due to improving trade relations. The CAI's final estimate for the 2022-23 cotton crop in India is 31.8 million bales, slightly higher than their earlier estimate, but lower than the government's estimate. For the 2023-24 season, India anticipates producing 330-340 lakh bales. In the Rajkot spot market, cotton prices closed at 27278.1 Rupees with a 0.1% gain.
From a technical perspective, the market experienced short covering with a drop in open interest by 1.87% and a price increase of 280 rupees. Support for Cotton candy is around 58080, with the potential to test 57540 levels below, while resistance is expected at 59080, with a chance to reach 59540 on an upward price move.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.
bogus estimates.at the end of the year there will be more deficiateLike 2