Mumbai (Commodities Control) – Downtrend in cotton prices in international and domestic markets led to dip in the fibre price, by Rs 200-300/Candy, in Karnataka.
The state witnessed arrivals of 12,000 bales of cotton today. While kapas was quoted at Rs 4000-5400, cottonseed was priced at Rs 1900-2000/Quintal. Cottonseed cake traded at Rs 1800-1900.
30MM cotton was priced at Rs 39700 and 29MM at Rs 39400/Candy in Karnataka.
Meanwhile, cotton prices have been stable in Andhra Pradesh and Telangana amidst arrival of 35,000 cotton bales. Here Kapas was quoted at Rs 4400-5000, cottonseed was priced at Rs 1950-2100/Quintal. Cottonseed cake traded at Rs 1700-1800.
Similar to other major cotton markets in the country, A.P. and Telangana didn’t witness many deals in the mandis as sellers weren’t ready to lower their prices. While buyers are on the sidelines waiting for the prices to stabilize. Price crash in global markets has spooked the domestic trade as well.
29MM traded at Rs 38,000-38,500 in Adoni mandi of Andhra. At Bhainsa mandi of Telangana, 30-29MM cotton was priced at Rs 38,700-39,300/Candy.
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.
(Commodities Control Bureau)