Cotton prices down on CAI production revision

Cotton candy prices fell slightly 0.13 per cent to settle at Rs 62,000 per candy. This drop is linked to increased production estimates from Indian organizations like Cotton Association of India (CAI) and Cotton Corporation of India (CCI), along with Cotton Australia's upward revisions. The expectation of a cotton candy surplus is putting downward pressure on prices.

Globally, the US has lower production forecasts, but overall estimates for 2023/24 indicate higher production, consumption, and trade. The Indian textile industry is advised against overreacting to recent price hikes, as this could hurt exports.

Technically, the market is seeing long positions being closed (liquidation) as prices dip. Analysts have identified support levels and potential price targets for traders to navigate the evolving market.