India, the world’s second-largest cotton grower, may harvest a record crop for a second season as all-time high prices and forecasts for normal rain spur farmers to increase planting, according to INTL FCStone.
Rainfall has been “well above normal” across south- central and eastern India so far this spring, increasing pre- planting moisture supplies for crops including cotton, soybeans and groundnuts, INTL FCStone said in a report on Monday.
Monsoon rain will be normal for a second year, the India Meteorological Department said on April 19. The nation relies on the June-to-September precipitation to sow crops from cotton to rice. Cotton futures locally advanced to a record in February in line with a global price rally after supplies failed to keep pace with demand.
“With domestic prices still elevated well beyond historic averages, a normal monsoon and hints of higher returns to producers are likely to encourage unprecedented plantings this spring and another record cotton harvest this autumn,” the report said.
Production in India may reach an all-time high of 31.2 million bales in the crop season ending September 30, according to the nation’s Cotton Advisory Board’s February 26 estimate. A bale weighs 170 kilograms.
Cotton for April delivery fell 0.3% to R765 per 20 kg on the National Commodity & Derivatives Exchange at 10:17 am in Mumbai. Prices have gained 32% in the past year.
(Source: http://www.financialexpress.com/news/cotton-crop-may-hit-new-high-next-year/788567/0)
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