Limited export demand may lead to drop in cotton prices

Cotton prices remain unchanged, following moderate demand. Kapas or raw cotton traded flat as demand from ginners was limited. Gujarat Sankar-6 cotton traded at Rs. 42,800-42,900 per candy of 356 kg. Kapas ruled at Rs.1,050-1,090 for a maund of 20 kg, while gin delivery kapas traded on Rs.1,090-1,095 for a maund in Rajkot.

A Rajkot-based cotton broker said that demand was moderate as prices ruled higher. Moreover, export demand is limited restricted buying by ginners. In the current situation, prices may dwindle over next few days.

About 60,000 bales cotton arrived in Gujarat and 1.85 lakh bales arrived across the country.

On the National Commodity and Derivatives Exchange, kapas April contract dropped by Rs.3 to Rs.963.50/20 kg, with an open interest of 17,585 lots.

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