Cottoncandy prices rise on CAI crop downgrade, supply concerns persist

Cotton candy prices rose 0.48 per cent to settle at Rs 54,200, buoyed by shrinking domestic supply projections and short covering in the futures market. The Cotton Association of India (CAI) has revised its 2024-25 cotton production estimate downward by 4 lakh bales to 291.30 lakh bales (170 kg each), citing reduced output in Maharashtra. This marks a drop from the earlier estimate of 295.30 lakh bales, underlining persisting supply tightness.

By the end of March, total cotton supply was estimated at 306.83 lakh bales, including 25 lakh bales of imports and opening stocks of 30.19 lakh bales. Available stocks stood at 127.83 lakh bales, with 27 lakh bales held by spinning mills and 100.83 lakh bales distributed among the Cotton Corporation of India (CCI), Maharashtra Federation, and traders.

India’s cotton imports are expected to more than double this season to 33 lakh bales from 15.20 lakh bales last year, while exports are projected to fall sharply to 16 lakh bales, down from 28.36 lakh bales.

Globally, the USDA trimmed world production by 69,000 bales, citing declines in Argentina and Cote d’Ivoire, while global consumption dipped by 520,000 bales. Technically, the market saw short covering, with open interest down 5.82 per cent to 178. Support lies at Rs 53,930 and resistance at Rs 54,370.