Cotton futures were trading below 90 USd/Lbs, a level not seen since July of 2021, as traders weighed prospects of higher supplies and lower demand due to faster rate hikes and economic uncertainty.
On the supply side, the USDA, in its latest report, revised the US cotton crop to 13.79 million acres in September from 12.48 million acres in August, which is almost 19% higher than the 11.22 million acres planted in 2021.
In India, another leading producer, the output for the season 2022-23 is expected to increase by about 15% to touch 375 lakh bales, provided the weather remains favorable till October. Still, crops remain threatened due to adverse weather conditions and pest attacks in major growing regions.
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