MCX Aug cotton edged lower on Thursday to close at 20,570 rupees per bales. In July, cotton futures plunge more than 8.3% tracking improved cotton imports, good area and satisfactory monsoon progress in cotton growing districts in India. Moreover, improved sowing, higher imports and weak international prices also weighing on prices. As per farm ministry report, acreage under cotton in the country was 108.95 lakh ha so far, up from 102.52 lakh ha from a year ago. Area in Gujarat under cotton is higher as on 29-Jul-19 at 23.76 lakh ha compared to 25.5 lakh ha last year. USDA increase production forecast for cotton in India by 1.75% this month to 29 million bales while the stocks jump by 17.8% to 8.93 m-bales. Trade data by Ministry of Commerce indicates that provisional shipments in the month of June 2019 are 88% lower at 60,000 (Vs 5 l bales) as compared to last year.
Source: moneycontrol.com