Production of cotton in the globe's second-largest grower is projected to drop as a result of inclement weather, a textile-mill advocacy said.
Trailing only the U.S., India will harvest as much as 33 million bales of cotton for year-beginning October 1, the secretary of the Confederation of Indian Textiles Industry told Bloomberg. The Cotton Advisory Board stated in mid-November that the subcontinent will produce 35.6 million bales while the U.S. Agriculture Department forecast 34.5 million bales late last month.
"Although the area is higher, yields have come down because of bad weather," D.K. Nair told the news service on Thursday. "There has been some crop loss in Andhra Pradesh because of rains and there were problems in Maharashtra."
At 10:37 a.m. on Thursday, cotton futures dropped 0.53 percent, a 0.51 cent slip to 95.41 cents per pound.
Business Recorder reports cotton closed 2011 as the year's worst-performing commodity as the soft fiber dropped lost roughly 37 percent of its value from the year prior. Cotton managed to stage a rally early in the year and set record prices of $2.197 per pound before plunging in value.
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