India's cotton stocks fall to 30-year low.

India's cotton stockpiles are set to plunge by nearly a third this year, hitting a 30-year low. Lower production and rising domestic use are to blame. This will limit exports, the world's second-largest producer's contribution to the global market.

The Cotton Association of India (CAI) predicts ending stocks for the marketing year ending September 30th to be just 2 million bales (340,000 metric tons). Production is expected to fall to 30.97 million bales from 31.89 million bales last year, while consumption is forecast to rise to 31.70 million bales from 31.10 million bales.

Despite the lower stocks, India's cotton exports might actually increase to 2.20 million bales this year, up from 1.55 million bales last year.