Cotton crop 1.26 millon bales vs 393,000 bales year ago. Cotton output in Punjab, among the largest producers of the fibre, is estimated to rise a sharp 220% on year to 1.26 millon bales (1bale=170 kg) in 2016-17 (Jul-Jun) because of higher acreage and better yield Cotton output in the state had fallen last year after the crop was severely attacked by white fly.
Futures contracts of cotton rose on the MCX. Tracking a rise in cotton futures on ICE, and because of lower arrivals in spot markets, On the MCX, the April contract was at 20,800 rupees per bale (1bale=170kg), up 0.7% from the previous close. Most-active July contract on the ICE was at 78.23 cents per pound, up 0.08%. Strong demand for US cotton from overseas buyers lifted prices of the commodity higher on ICE. US cotton exports were at 307,200 bales in the week ended Apr 6, up 14% on week, Cotton arrivals in major spot markets across India were estimated at 81,800 bales (1bale=170kg) down from 88,800 bales on Friday.
The USDA Foreign Agricultural Service expects Bangladesh cotton opening stock in 2017-18 (Aug-Jul) to fall 7% on year to 1.06 million bales (1USbale=480pound). Cotton beginning stocks at 1.14 million bales. The Foreign Agricultural Service links US agriculture to the world to boost export opportunities and global food security. The US agency has projected Bangladesh year-to-July 2018 cotton crop to increase marginally by 4% on year to 130,000 bales due to favorable weather and increased acreage in long-staple American upland variety. Imports have been estimated at 6.2 million bales for the next season, compared with 6.0 million bales More than 40% of imported raw cotton and 80% of imported yarn and fabrics are used by spinning mills and the ready-made garment sector to meet export demand. Mills in Bangladesh are consuming 6.3 million bales of the commodity in 2017-18, up marginally from 6.2 million bales this year, while closing stock at the end of 2017-18 season is pegged at 1.08 million bales, up from 1.06 million bales this year.
Futures contracts of cottonseed oilcake hit a four-month low of 1,998 rupees per 100 kg, tracking a fall in physical markets. The most active May contract of cottonseed oilcake on the NCDEX traded at 2,022 rupees per 100 kg, down 1.75% from the previous close. In Akola, the benchmark market in Maharashtra, cottonseed oilcake was sold at 2,070-2,080 rupees per 100 kg, while in Kadi, Gujarat it was quoted at 2,050-2,060 rupees, both down 30 rupees from previous close. Weakness in cotton contracts on the MCX also weighed on prices of cottonseed oilcake, a derivative of cotton.
Futures contracts of cotton on the MCX inched lower today because of a rise in arrivals in wholesale markets and expectations of higher output in 2017-18 (Oct-Sep) On MCX, the April contract of cotton was at 20,550 rupees per bale (1bale = 170 kg), down 0.9% from previous close. Arrivals of cotton in major spot markets across the country were pegged at 88,800 bales on Friday, higher than 82,800 bales on Thursday. According to the International Cotton Advisory Committee, cotton output in India, the largest producer, will likely rise 2% on year to 5.9 million tonne in 2017-18. Cotton futures on NCDEX are expected to trade mixed, with a negative bias during the week.
Arrivals of cotton in major spot markets across the country were pegged at 82,800 bales (1bale=170kg) down from 93,800 bales.