Cotton prices dip on ample supply, Indian planting mixed

Cotton futures (Cotton candy) fell slightly as a recent USDA report indicated a global surplus of cotton for the 2024/25 season. The report showed increased stocks and steady demand, leading to a lower average farm price. Despite adjustments in production and consumption across regions, world ending stocks are still projected to be high.

Domestically in India, cotton planting has begun in southern states, supported by early monsoon rains. However, planting in North India is expected to decline due to pest issues and rising labor costs. This could impact overall acreage.

Reflecting the global trend, spot cotton prices in Rajkot, India, also dipped slightly. Technically, the cotton market is experiencing selling pressure, with support levels identified at 55,760 and resistance at 56,480.