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Kapas or raw cotton futures continued to slide on reports of a good cotton crop and a bearish trend in the global market.
February contracts on the NCDEX dropped by Rs 22 to Rs 924 a maund (of 20 kg). March and April deliveries declined by Rs 21 and Rs 24 respectively to Rs 938.50 and Rs 940 respectively.
On the CBOT, US cotton futures ended a two-day rally as investors booked profits.
Cotton for December delivery slid 1.19 cents or 1.6 per cent at 75.22 cents a pound on ICE Futures US.
Cotton prices have been on the downside since the last week on account of improved rain, which may narrow down crop losses in Gujarat. Monsoon deficiency too has narrowed down, raising hopes of better output.
Good rain in Gujarat, the top producer of the fibre, has provided some relief to the standing cotton crop.
Acreage
As on September 14, cotton has been planted on 114 lakh hectares, lower by 5.6 lakh hectares compared with last year. However, the acreage so far is at a par with its normal area of 111.8 lakh hectares.
According to the latest updates of the Cotton Advisory Board, cotton output for 2011-12 season is revised upward to 357 lakh bales (347 lakh bales).The ending stocks figure for the 2011-12 season, that would end in September, has been revised upward to 28 lakh bales from previous estimates of 25 lakh bales.
In the spot market at Surendranagar (Gujarat), kapas was traded firm at Rs 799.4/maund.
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