Cotton prices declined on the back of lower export demand and limited buying by spinning mills. Kapas or raw cotton prices declined marginally on increased selling by farmers.
Gujarat Sankar-6 cotton traded lower by Rs 200 at Rs 39,300-39,500 for candy of 356 kg. Kapas decreased by Rs 5-10 to Rs 950-990 for a maund of 20 kg. Gin delivery kapas were quoted at Rs 970-1,005 a maund.
About 65,000 bales arrived in Gujarat and 1.99 lakh bales arrived across the country.
On the National Commodity and Derivatives Exchange, kapas April contracts declined by Rs 14 or 1.43 per cent to Rs 963 a maund, with an open interest of 11,339 lots.
Traders said that sentiments in the market were down on as export demand was slow. According to a market expert, the price of cotton may not improve in the coming days as demand is expected to be normal. Buyers are anticipating further fall in price.
The international market is also dull, which may impact the Indian market.
Dow Jones reports: Cotton futures retreated on Monday morning as traders booked profits.
Cotton for March delivery on the ICE Futures US exchange was 1.9 per cent lower at 81.54 cents a pound in thin holiday trade.
Source: The Hindu