A much-anticipated large-scale procurement by the Cotton Corporation of India (CCI) at MSP has marginally increased cotton candy prices in India.
CCI aims to purchase over 10 million cotton bales this season despite a decline in production forecasted by the Cotton Association of India (CAI) due to lower yields in key producing regions. As per the CAI report, India’s cotton production is expected to decline to 30.175 million bales this season from 32.745 million bales the previous season.
Total cotton supply is estimated at 23.426 million bales, comprising fresh pressings, imports, and opening stock. Domestic consumption is projected to remain stable, while exports are expected to decrease.
Globally, Brazil's cotton production is forecast to increase, driven by expanded planting area. In the US, domestic mill use has been slightly reduced, but global cotton consumption is seeing marginal increases due to higher demand in several countries.
Market analysis suggests short covering, with open interest decreasing. Support levels for cottoncandy are identified, while resistance levels are also noted, indicating potential price movements.
