MCX cotton falls as 2017-18 output seen higher.

Futures contracts of cotton on the MCX fell due to expectations of higher output in 2017-18 (Oct-Sep). The US Department of Agriculture Foreign Agricultural Services has raised its forecast for India cotton production in 2017-18 to 37.2 million bales (1bale = 170 kg) from 35.9 million bales estimated in June. On the MCX, the most active July cotton contract was at 19,870 rupees per bale, down 0.9% from the previous close.

USDA arm raises India 2017-18 cotton crop estimate to 37.2 million bales.

US Department of Agriculture Foreign Agricultural Services has raised its forecast for India cotton production in 2017-18 (Aug-Jul) to 37.2 million bales (1 bale = 170 kg) from 35.9 million bales estimated in June. Rise in production is likely to lower import of the country to 1.9 million bales from 2.24 million bales estimated in the June report. Mills buy more from the domestic market as likely rise in production would make local cotton prices cheaper. Consumption of mills is seen at 30.8 million bales in 2017-18, while exports are seen at 5.4 million bales. Closing stock at the end of 2017-18 is pegged at 18.6 million bales, up from 17.1 million bales estimated by USDA in its previous report.