A massive correction in major agri counters on NCDEX pulled cottonmeal futures lower too. The benchmark NCDEX August futures shed Rs 44 or 2.84% on the day to close at Rs 1506 per barrel today. Heavy profit selling emerged in the counter as the open interest dropped by 12% on the day. Spot prices have had a bearish run in the current week and ready quotes in Akola slipped to Rs 1550 per quintal today.
Prices had held up on worries about potntial crop losses given the excess rainfall in Maharashtra’s Vidarbha region but have come off nearly Rs 50 this week. Spot markets are still eying continued demand from hereon as weak arrivals are likely to act as a supportive factor.
The Cottonseed oilcake stocks are reportedly lower in ready market and arrivals are thinning now. The latest agri ministry data shows that acreage under Cotton is at 100.55 lakh hectares, up 20% compared to year ago levels as on July 19th 2013.
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