Cotton Prices Softens On Bleak US Crop Report

Cotton futures in New York were pushed down by US government report terming the bleakest crop in decades. Traders saw little to support prices with a record surplus expected in the marketing year to end-July 2013 and US producers preparing to sell their crops ahead of the harvest. On the ICE, December futures contract dropped 0.2% week on week.

The Cotlook A index was also down US cents 1.45 while the China Cotton Index gained 12 yuan a ton. In Pakistan, cotton markets witnessed increase in lint arrivals, which resulted in drop in spot rate by PakRs75 per maund on Friday. Indian cotton was cheaper by INR 300-400 a candy (of 356 kg) on the back of higher supplies projected by the USDA and slack demand from the mills.