Cotton dips on high supply outlook, slower mills demand
March 13 (Reuters) -U.S. cotton futures eased on Wednesday on increased supply expectations for the natural fiber and lower demand from mills, coupled with weakness in grain markets.
* Cotton contract for May CTc1 fell 0.23 cent, or 0.24%, to 95 cents per lb by 1:13 p.m. ET (1713 GMT).
* The decline is attributed to the lack of news to "keep the bulls fed", with an abundance of bearish news coming in, namely increases in global supply expectations from Brazil (expected record crop), Australia and the U.S. Activity in the industrial sector has eased further, said Valentin Olah, risk management consultant at StoneX Group.
* Cotton Australia raised its estimate for Australian production this year to "at least" 4.5 million bales after widespread rainfall boosted yields.
* "We have a nearby negative outlook for the price amid the loss of buying momentum, so in the next two weeks we can go to 90 cents or even below," Olah added.
* In the grains market, Chicago soybean and corn futures eased after hitting one-month highs in the previous session, as the market awaited more clues on South American production following adverse weather and forecast cuts this week. GRA/
* The U.S. Department of Agriculture's (USDA) weekly export sales report is due on Thursday. EXP/COT
* Last week, the USDA report showed export sales of 330,800 running bales were up 24% from the previous week and 26% from the prior 4-week average.
Reporting by Anushree Mukherjee in Bengaluru; Editing by Shailesh Kuber
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