September 08, 2023 Cotton candy prices dipped by -0.56%, closing at 60,640, primarily due to concerns about demand from key buyer China. The U.S. Department of Agriculture (USDA) reported that 31% of the cotton crop was in good to excellent condition, slightly down from the previous week due to the impact of Hurricane Idalia. Heavy rainfall in China's Xinjiang region is expected to affect both the quality and quantity of cotton production in the area.
India experienced a drop in cotton sowing compared to the previous year, largely due to poor monsoon conditions in Gujarat and other factors. Major mills closing and low stocks of old cotton crops also contributed to tight local supplies. Arrivals of the new cotton crop have begun in parts of North and South India, with prices currently above the minimum support price (MSP). The market expects increased arrivals after September 15.
From a technical perspective, the market witnessed long liquidation, with open interest remaining unchanged at 92. Cotton candy prices decreased by -340 rupees. Support is anticipated at 60,500, with a possible test of 60,370 if this level is breached. Resistance might come into play at 60,760, with the potential for prices to test 60,890 if this level is surpassed.