After touching a new high, cotton price declined on Friday as demand dropped a bit. The price decreased by Rs 1,000 a candy (of 356 kg) and raw cotton by Rs 10-15 for a maund of 20 kg.
At Rajkot and Gujarat, Shankar-6 variety cotton traded at Rs 52,500 a candy, a decrease of Rs 1,000 from the previous day's Rs 53,500. The price of raw cotton declined by Rs 10-15 to Rs 1,230-1,240/maundin Kadi. At Rajkot, it was quoted at Rs 1,150-1,230/maund. About 48,000 bales arrived in Gujarat and 1.15 lakh bales arrived in India.
According to Mr Samir, a broker from Rajkot, price of cotton has dropped because mills have cut down their buying a bit due to high prices. Price may further come down as buyers are now waiting for price to stabilise. A further fall by Rs 1,000 is expected next week.”
Moreover, according to analysts, some profit booking also put pressure on the price, but overall sentiments are positives for cotton as in the coming days demand will be back.
At the Multi Commodity Exchange (MCX), kapas for April Delivery fell from Rs 1031.40 to Rs 1014.10/maund.