Cotton prices continued to decline on the back of weak international market and lower demand from mills and exporters.
A Rajkot-based broker said that prices may decline by another Rs 500 for a candy of 356. “The global cotton scenario is bearish and it has affected our market too, bringing down cotton prices. Moreover, domestic demand is weak,” he said.
On Monday, Gujarat Sankar-6 cotton declined by Rs 200 to Rs 33,500-33,700 for a candy of 356 kg. Kapas price moved down by Rs 10-12 to Rs 800-820 for a maund of 20 kg in local and Kadi delivery kapas was stood at Rs 830-835 per 20 kg. About 17,000-18,000 bales arrived in Gujarat and 80,000 bales arrived across the country.
Similar trend was seen in Maharashtra also. In Maharashtra, arrivals were 12,000-13,000 bales and traded was done at Rs 31,000-32,500 a candy.
On the National Commodity and Derivatives Exchange, kapas contract for April 2012 declined by Rs 14.50 to Rs 981.50 for 20 kg, with an open interest of 1,276 lots.