In February, Indian cotton exports are poised to reach the highest level in two years, fueled by a surge in global prices, which has made Indian cotton appealing to Asian buyers. Contracts for 400,000 bales have been signed, primarily with China, Bangladesh, and Vietnam.
India is projected to export 2 million bales in the 2023/24 marketing year, surpassing earlier expectations. However, the Cotton Association of India (CAI) predicts a 7.7 per cent decline in India's cotton production to 29.41 million bales in 2023/24, the lowest since 2007/08. The CAI maintains its pressing estimate at 294.10 lakh bales, with the total cotton supply estimated at 210.05 lakh bales till January.
On a global level, the US Department of Agriculture (USDA) reported a significant 69 per cent decrease in net sales for 2023/2024 compared to the previous week, along with an 83 per cent drop from the prior 4-week average. The USDA's February WASDE report projected a 355,000 bales lower world cotton production in 2023/24, with decreases in Australia and Benin offsetting minor increases elsewhere. World cotton ending stocks for 2023/24 are nearly 700,000 bales lower than January, reflecting reduced beginning stocks and production, while world consumption is forecasted to remain relatively stable.
