Cotton area up over 2-fold on year at 4.6 million hectares.

Cotton acreage was more than two-fold higher on year at 4.6 million ha as of Thursday. The acreage was also higher than the normal of 3.4 million ha for the corresponding period, based on the average of last five years. The acreage is sharply higher than last year due to a huge shift from pulses to cotton as it offers lucrative prices. Good progress of monsoon has also aided cotton sowing across the country. In the largest producer Maharashtra, acreage was 62-fold up on year at 1.2 million ha. In another major grower Telangana, sowing was 53.2% higher than a year ago at 881,000 ha.

NCDEX cotton oilcake up tracking gains in spot market.

Futures contracts of cottonseed oilcake traded higher on the NCDEX today tracking gains in spot prices. The most-active August contract traded up 1% at 1,649 rupees per 100 kg on the NCDEX. Bargain buying after prices declined to a 20-month low in recent sessions also pushed prices higher. Cottonseed oilcake, a derivative of cotton, is used as animal feed. In the benchmark market of Akola, Maharashtra, the commodity traded at 1,650 rupees per 100 kg, up 10 rupees from previous close. The overall sentiment for the commodity, however, remained bearish due to sluggish demand and sufficient supply.

Cotton Outlook raises year to Jul global output, demand projections.

UK-based Cotton Outlook has raised its forecast for global cotton output in 2017-18 (Aug-Jul) to 24.72 million tonne from 24.49 million tonne projected in May. Output in the coming season is projected to be higher mainly due to increased crop in Brazil and Turkey. The agency has also increased its estimates for global cotton consumption during the year, to 24.55 million tonne from 24.45 million tonne in the previous month. Consequently, global stock levels are now expected to rise to 173,000 tonne, compared with a forecast of 44,000 tonne in May.

MCX cotton up on global cues, low spot arrivals.

Futures contracts of cotton were up on the MCX due to a rise in cotton futures on ICE and lower arrivals in spot markets. On MCX, the July contract of cotton was at 20,010 rupees per bale (1 bale = 170 kg), up 0.5% from the previous close, while the most active December contract on ICE was at 67.3 cents per pound, up 0.1%.

ICRA sees India year to Sep 2018 cotton output up 6% at 36 million bales.

India cotton production is likely to increase by 6% to around 36.0 million bales (1 bale = 170 kg) in 2017-18 (Oct-Sep), owing to higher acreage and forecast for normal monsoon due to a likely El Nino formation gradually waning. Expectations of higher output in the upcoming season may create a downward bias for cotton prices from July. Cotton sowing in the ongoing kharif season has already witnessed a rise in acreage compared with last year, and is likely to sustain in coming weeks. Cotton acreage in the country was up 30% on year at 2.47 million ha.

MCX cotton rises on short covering.

Futures contracts of cotton traded higher on the MCX as investors covered their short positions. The front month June contract had hit a five-month low of 19,470 rupees per bale (1bales=170kg) giving traders an opportunity to buy at lower levels. Expectations of higher output in 2017-18 (Oct-Sep) due to increased acreage across the country pushed prices lower. Gains in cotton futures on the ICE also aided the sentiment. On the MCX, the July cotton contract was at 19,730 rupees per bale (1bale=170kg), up 0.2% from the previous close, while the most-active December contract on ICE was at 67.66 cents per pound, up 0.43%.

India cotton area 2.47 million hectares up 30% on year.

Cotton acreage in the country was up 30% on year at 2.47 million hectares as of Thursday, according to sowing data for 2017-18 (Jul-Jun). Attractive returns for the commodity prompted farmers to switch from pulses, especially pigeon pea, in most parts of the country. Progress of monsoon rains in key growing areas also helped in sowing. Gujarat, Maharashtra, Madhya Pradesh, and Telangana are among leading growers of the crop where monsoon is progressing well. The government has targeted to produce 35.50 million bales (1bale=170kg) of cotton in 2017-18 (Jul-Jun), higher than last year 32.58 million bales.

MCX cotton at 5-month low as output seen higher.

Futures contracts of cotton on the MCX hit a five-month low of 19,580 rupees per bale (1bale=170kg) due to expectations of higher output in 2017-18 (Oct-Sep). Cotton acreage in Gujarat, the largest producer, was at 496,400 ha, compared with 175,500 ha last year. On the MCX, the most active July cotton contract was at 19,800 rupees per bale, down 0.4% from the previous close.

Cotton, corn area up in Maharashtra but erratic rains raise concern.

With adequate pre-monsoon showers in Maharashtra, sowing of key kharif crops, particularly cotton, maize and soybean, has increased sharply. Erratic rainfall in the last couple of days in some regions in the state is likely to raise concerns over the growth of the early sown crop. Cotton acreage in Maharashtra, the second-largest producer, rose a sharp around 203% on year to 332,308 ha as on Friday because of higher returns in the ongoing season.

MCX cotton down for 2nd day as output seen higher.

Futures contracts of cotton on the MCX declined for the second straight day due to expectations of higher year-to-September 2018 output. Prospects of higher sowing across states and forecast of a normal monsoon dampened the market sentiment. Cotton acreage in Gujarat, the largest producer, was at 496,400 ha, compared with 175,500 ha same period last year. Subdued demand because of poor quality arrivals also weighed on prices. On MCX, the July cotton contract was at 20,210 rupees per bale (1bale=170kg), down 0.7% from the previous close.

NCDEX to levy 5% additional margin on cotton oilcake.

The National Commodity and Derivatives Exchange impose a 5% additional margin on Jul-Sep contracts of cottonseed oilcake, both on buy and sell sides. The cottonseed oilcake contracts have fallen over the last few weeks because of ample supplies and subdued demand in the local market. The most active July futures of the commodity ended 1.5% down at 1,721 rupees per 100 kg.