Cotton candy prices dropped by about 0.68%, reaching 58540, which followed a similar trend in ICE (NYSE:ICE) prices.

This was due to more certified cotton stocks, less demand, and a growing global supply. 

Although there was an increase in weekly export sales reported by the USDA, worries about a potentially good cotton crop in places like Australia limited any significant price increases. 

The International Cotton Advisory Committee (ICAC) predicted that there would be more areas used to grow cotton, leading to higher production, consumption, and trade in the upcoming season, 2024-25, which could mean more cotton available worldwide.

In India, the Cotton Association raised its estimates for this season's cotton production because they expect a better crop. 

However, for the next season, 2024/25, they predict a two percent decrease in production as farmers may switch to more profitable crops. 

On the other hand, China is expected to import more cotton in 2024/25 due to higher demand for textile and apparel products, both domestically and internationally. 

This comes after an increase in exports of these products and a greater need for imported cotton.

Technically, the cotton candy market saw a lot of selling, with the number of contracts staying the same at 416, but prices falling by 400 rupees. 

The support level for cotton candy is around 58160, and if it falls below that, it could go down to 57780. 

The resistance level is expected to be around 59060, and if prices go above that, they might reach 59580. 

People in the market are keeping a close eye on how much cotton is being produced globally, how much is being used, and how much is being traded to get a better idea of where prices might go.

24/04/2024 11:31am