The upward adjustments made by the Cotton Association of India (CAI) and Cotton Corporation of India (CCI) in cotton production forecasts led to cotton candy prices dipping by 0.42 per cent to Rs 62,220 recently. CAI has increased its estimate for cotton production this season to 309.70 lakh bales, while CCI reported procuring 32.81 lakh bales so far.
The anticipation of increased global supply, fueled by higher production forecasts in India and Australia, contributed to a decline in cotton prices. However, end stocks continued to decline, suggesting a potential tightening of supply-demand dynamics.
The cotton candy market experienced fresh selling, leading to a 1.62 per cent rise in open interest, with prices falling by Rs 260. Presently, cotton candy is being sold at Rs 62,100, with prices likely to decline further to Rs. 61,990.
Overall, cotton candy prices are influenced by various factors, including production estimates, demand-supply dynamics, and market sentiment. While the anticipation of increased supply weighs on prices, concerns about dwindling ending stocks could offer some support in the short term.
