Cotton futures moved towards the 80 USd/Lbs mark as dip buyers emerged to blunt a massive selloff that sent the commodity to a near 22-month low of 71.6 last month.
Still, prices remained about 50% down from their May peak, pressured by a stronger dollar and lingering demand concerns due to challenging economic conditions. On the supply side, the latest report from the US Department of Agriculture indicated global cotton production is forecast at 118.1 million bales in 2022/23, 2% above the previous year, as both area and yield increased.
The higher output is mainly attributable to India, Brazil, and China, which offset reductions from the United States and Pakistan.
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