For a commodity that seemed bullish following a truant monsoon, cotton has wilted with the increasing ferocity of rain in growing areas.
The commodity has dropped by over 10 per cent in a matter of three weeks.
Though delayed rain lowered acreage in Gujarat, it has been made up to a large extent in Andhra Pradesh and Madhya Pradesh.
The main reason for the drop in price is the current spell of rain, particularly in Gujarat and Maharashtra.
While irrigation has helped sustain the crop during the early parts of the sowing season, the current spell of rain is now expected to help in a better yield.
Poor fundamentals in the global markets are likely to put pressure on prices. Demand is lacklustre despite a lower global output and this is seen as a factor that could continue to impact cotton prices.