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By
Reuters
Published
Nov 30, 2009
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Kapaskhali futures rise on cotton exports

By
Reuters
Published
Nov 30, 2009

MUMBAI, Nov 30 (Reuters) - India's cottonseed oilcake, or kapaskhali, rose on Monday 30 November tracking soaring cotton exports which is pushing domestic cotton prices higher, analysts said.



Kapaskhali, a by-product of cottonseed, is used as cattle-feed and is largely consumed in the north-western states of India.

Indian traders have contracted 1.79 million bales of raw cotton (of 170 kg each) for exports so far in the 2009/10 marketing year begining October, a government official said on Monday 30 November.

India's cotton exports in 2009/10 are expected to increase 57 percent to 5.5 million bales, A.B. Joshi, textile commissioner and chairman of Cotton Advisory Board (CAB), had told Reuters earlier this month.

"The prices of cotton and kapaskhali will continue to rise...we have exports rising while the output is lower..this is simple logic," said an analyst with a Hyderabad-based brokerage.

India is likely to harvest 29.5 million bales of cotton in 2009/10, down from 30.5 million bales estimated earlier, as floods and cyclone damaged the crop in southern and western part of the country.

The January contract NCDF0 ended 3.6 percent higher at 1,263 rupees per 100 kg. (Reporting by Sourav Mishra; Editing by Harish Nambiar)

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