MCX October cotton down 1% as output seen higher.

The October contract of the new crop cotton fell over 1% on the MCX due to projection of higher output in 2017-18 (Oct-Sep). Increase in acreage across the country and forecast of normal monsoon is likely to boost yield of the crop next season. The US Department of Agriculture has pegged India 2017-18 (Aug-Jul) cotton output at 28.0 million bales (1USbale=480pound), up 6% on year. On the MCX, the October contract traded at 19,420 rupees per bale (1bale=170kg), down 1.1% from the previous close, the most-active June contract trading down 0.4% at 20,950 rupees. Weakness in cotton futures on the ICE further contributed to the fall. On ICE, the most active July contract traded at 77.47 cents per pound, down 0.2%.