Mumbai (Commodities Control) It started all in China and the dreaded Corona Virus has infected nearly 50 nations already; resulting in panic in financial markets all over the world. Global Commodities market is panic-struck as well.
Crash fall in international cotton price has affected sentiments in India Cotton market, as well.
Cotton prices in several producing states- Punjab, Haryana, Rajasthan and Maharashtra, have declined. Infact sources reveal that no trade has taken place until past noon time either in Madhya Pradesh or Gujarat mandis. Traders admit that although markets opened lower by Rs 200-300, yet not a single buyer approached.
It is to be noted that overseas cotton futures slumped more than 4% on Thursday to their lowest level in over four months. March Cotton on ICE closed at 62.60 cents, down 295 points. Cotton contracts for May settled down 297 points at 62.5 cents per lb. It traded within a range of 62.47 and 65.47 cents a lb. It slipped to 62.47 cents per lb earlier in the session, the level last seen on Oct. 11.
International cotton’s weakness reflected in MCX cotton as February contract lost Rs 250 to trade at Rs 17,960.
Market participant sees buyers on the sidelines until corona virus is contained. Traders refrained from striking deals in expectation of further fall in the fibre.
(Commodities Control Bureau)