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Cotton prices dropped as buying by domestic mills declined. Moreover, export demand also slowed. With this, overnight losses on the ICE futures and tight liquidity ahead of financial year closing supported the price to slip.
Gujarat Sankar-6 cotton declined by Rs 200-300 to Rs 38,600-38,800 for a candy of 356 kg. B grade cotton was traded at Rs 38,200-38,500. About 28,000-30,000 bales of 170 kg cotton arrived in Gujarat and 85,000-90,000 bales cotton arrived in India.
Cotton ready delivery quoted at Rs 4,100-4,210 a quintal in Punjab, Rs 4,070-4,085 in Haryana and Rs 4,070-4,080 in Rajasthan.
Traders said that prices may decline further by Rs 500-1,000 a candy in coming days but market may recover thereafter due to tight local supply position.
ICE cotton futures eased Thursday after the US Department of Agriculture reported a drop in export sales of the fibre from the US cotton for delivery in May on ICE Futures US was down 0.6 per cent at 88.60 cents a pound.
A Rajkot-based cotton broker said that as March ending is near, buying interest is weak in the market. Exporters and mills demand declined and it may decrease further in coming days.
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