MCX Cotton continues to trade on positive note on Wednesday due to concern over loss due to heavy rains. Moreover, industry sources believe that India's cotton yield may decline on whitefly, pink bollworm attacks. A substantial cotton area came under whitefly attack in Punjab and Haryana, pink boll-worm was reported to have attacked standing crop in Maharashtra, Andhra Pradesh and Gujarat. However, as per latest data from Agricultural Ministry, cotton is planted in 114.3 lakh hectares (l ha) till last week, higher 18.2% compared to last year acreage 96.5 lakh ha for same period.

Outlook

Cotton futures are expected trade sideways to lower on expectation of further corrections due to weak international prices on reports of good production worldwide. However, crop damage from heavy rains in cotton growing areas of Gujarat coupled with pest attack noticed is still concern.

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