USDA raises India's Cotton production forecast to 30.5 million bales
Commodity Online | October 14 2019
UPDATED 12:59:14 IST

Short-Term Risk Rising but Trend Remains Very Bullish

Retail Traders & Investors Squeezed to Buy High-Risk Assets Again

LME starts publishing off-warrant stocks data

Metals extend gains; oil prices trend higher despite increase in inventories

Metals rally as risk aversion takes hold; oil prices steady ahead of inventories report

The United States Department of Agriculture (USDA) estimates India cotton production for 2019/20 at 30.5 million 480-pound bales, up 3 percent from last month and up 15 percent from the previous year.

The increase is based on improved weather conditions and record planted area in the major cotton regions of Gujarat and Maharashtra. Harvested area is estimated at 12.9 million hectares, up nearly 2 percent from the previous month and up 2 percent from last year. Yield is estimated at 515 kilograms per hectare, up 12 percent from last year.

Yield is expected to bounce back from last year’s drought-reduced crop. Although the Southwest Monsoon was underperforming early in the season, it resumed and progressed to the major cotton areas in central India: Gujarat, Maharashtra and Madhya Pradesh in late July, the report said.

Currently the crop is in the boll stage in central India. NDVI analysis is showing strong crop vigor in both Gujarat and Maharashtra, USDA said.

According to the All India Crop Situation report from September 27, 2019 planting progress is up 5 percent from both last year and 5-year average. Planting activities have ended. Harvest has begun in the northern areas and in the early planted cotton areas of Gujarat.