Mumbai (Commodities Control) – Domestic cotton markets are panic-struck due to massive correction in overseas cotton markets. In Lower Rajasthan cotton prices declined by Rs 400-500/Candy. Arrivals of 2000 bales were reported in the mandis of Lower Rajasthan.
Kapas was quoted at Rs 4000-5100, while cottonseed traded at Rs 1950-2300/Quintal. Cottonseed oilcake was priced at Rs 1850-1950/Quintal.
Market has witnessed near-to-nil buying activity. The negligible deals struck, happened Rs 500 lower. Traders expect this decline to continue in the near term. Even sellers are forced to lower their quotes to get liquidate their stocks. The prime reason behind the dullness is the crash fall in overseas cotton prices. Textile millers are on the sidelines in expectation of further price fall.
The pandemic has now reached nearly 50 nations, resulting in panic across global equities and commodities markets. The fear of economic slowdown has led to weakness in demand; weighing upon cotton prices.
Cotton futures fell over 3% to a five-month low on Friday.Cotton contract for May fell 3.3%, to 60.46 cents per lb as of 0807 GMT in pre-market trading. The contract touched its lowest since September at 60.18 cents earlier in the session.
This decline on ICE cotton futures led to price fall in domestic cotton. At 3.16 pm, Cotton March contract on MCX lost Rs 250 to trade at Rs 18,150.
(Commodities Control Bureau)