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Raw cotton or kapas futures have declined on the back of increasing arrivals. The ongoing harvest in the key growing States, coupled with reports of improved crop condition in the US, also fuelled the bearish trend.
However, demand might emerge due to buying at lower levels, restricting any sharp fall.
On the NCDEX, February contracts slipped 2.3 per cent to Rs 898 for a maund of 20 kg and March contracts lost 1.9 per cent at Rs 944.
Cotton arrivals from the new crop are estimated at 24,000 bales (of 170 kg each) in the country — up 1,800 bales from Tuesday. Gujarat, the top producer of the fibre, recorded 7,500 bales, and in Maharashtra arrivals were flat at 3,500 bales. The cotton season is from October to September.
As on September 28, cotton was being planted on 114 lakh hectares, down from last year’s 119.6 lakh hectares.
According to the latest CAB report, exports in the 2012-13 marketing year that began on October 1 are likely to be lower by 46 cent at 7 million bales compared with 12.7 million bales in the 2011-12 season. The ending stocks have been revised upward to 3.4 million bales.
Kapas prices gained on the spot market and at Surendranagar (Gujarat) were ruling at Rs 799.4 a maund.
Global scenario: New York cotton for December delivery inched up 0.1 per cent to settle at 71.84 cents/lb on ICE Futures U.S.
Global cotton prices are mainly influenced by China, the US and India. China's 2012 cotton output is estimated at 6.97 million tonnes, down 4.2 per cent from last year.
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