Cotton on MCX settled down -1.2% at 20650 on higher imports amid availability of poor quality of the fibre in domestic markets which has hurt demand from local buyers. India's cotton productivity has dropped in recent years owing to worm infestations hurting quality of the crop. India's cotton output is expected to slip to 34.2-34.6 million bales in 2016-17 according to estimates of Southern Indian mills Association from 39.8 million bales in 2013-14. Poor quality of the fibre and lower output pushed up domestic cotton prices in 2016-17. Moreover, this month's 2016-17 US cotton forecasts showed higher production and exports relative to last month. US output forecast was raised by 271,000 bales to 17.2 million.

Trading Ideas: 

 * Cotton trading range for the day is 20457-20997. 

* Cotton dropped on higher imports amid availability of poor quality of the fibre in domestic markets which has hurt demand. 

* India's cotton productivity has dropped in recent years owing to worm infestations hurting quality of the crop. 

* India's cotton output is expected to slip to 34.2-34.6 million bales in 2016-17 according to estimates of Southern Indian mills Association. 

* Cotton prices in spot market dropped by 180.00 rupees and settled at 20890.00 rupees.

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