Cotton drops 10% in a week on poor buying

Cotton prices continued to rule lower even after the Centre allowed additional exports. This is due to dull demand from mills and exporters.

Sankar -6 variety declined by about Rs 4,000 a candy of 356 kg to Rs 40,000-41,000 from Rs 44,000-45,000 during the week. Low-grade cotton ruled at Rs 28,000-30,000 a candy.

Quality raw cotton or

kapas was traded at Rs 540-850 for a maund of 20 kg and average raw cotton at Rs 575-670 for a maund . In Gujarat, 7,000-8,000 bales arrived, and 17,000 bales arrived in the rest of the country.

A Rajkot-based broker said: “Exporters are still uncertain about the allotment of quota, so they avoided the market. Moreover, demand from millers is also absent. Cotton prices may decline in the coming days.” On the National Commodity and Derivatives Exchange, cotton contracts expiring on February 29 traded at Rs 683 for a

maund , registering a decline of Rs 25.80.

Traders were expecting prices to rise after the Centre allowed exports of 10 lakh bales more.

A Maharashtra-based trader said quality cotton could drop to Rs 35,000 a candy in the coming days.

Price of Maharashtra raw cotton in Gujarat was Rs 600-610 for a maund .