India: Increased Cotton Acreage Drives Kapaskhali Prices Down
August 26, 2009 Sourav Mishra
Reuters India
India cottonseed oilcake, or kapaskhali, futures ended lower for a third consecutive session on Wednesday tracking a weak oilseed complex and on an increase in cotton acreage, analysts said.
Indian soybean futures ended down on Wednesday tracking weakness in spot demand and as rains in oilseed growing region boosted crop prospects, analysts said.
The most-active September futures contract NCDU9 ended down 1.85 percent at 594.2 rupees per 50 kg.
“Traders expect supplies to increase as acreage under cotton is much higher than last year,” said an analyst with a Hyderabad-based brokerage.
Cottonseed oilcake is a by-product of cotton and competes with other oilseed cakes to be used as cattle fodder.
Cotton acreage as on August 20 stood at 9.49 million hectares, up from 8.45 million hectares in the corresponding period the previous year.
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