Cotton prices up in India despite lower production estimate

Cotton prices, tracked by Cottoncandy, increased by 1.44 per cent due to several factors: a decrease in the current season's estimated cotton production, a lowered world consumption forecast for 2023-24, and an increase in projected global ending stocks.

Major cotton-consuming countries like India, Indonesia, Pakistan, Uzbekistan, and Turkey experienced reduced consumption estimates. World ending stocks for 2023-24 rose by 2.0 million bales due to higher beginning stocks, increased production (except in the U.S.), and lower consumption.

The Cotton Association of India (CAI) maintained a steady estimate for domestic consumption at 311 lakh bales for the 2023-24 season. Despite Brazil's record-high cotton production in 2022-23 contributing to a global supply increase, sluggish demand led to inflated inventories and decreased cotton prices globally.

Additionally, reports indicate a decline in pink bollworm infestation in Indian cotton crops. Technically, the cotton market is experiencing fresh buying, with support at 57240 and resistance at 58220, while breach or surpass of these levels may lead to further price movement.