Cotton prices dip amid lower demand due to wait and watch approach of market participants
News: As per media reports , cotton price that had touched an all time high of Rs 1,10,000 per candy (356 kg) is likely to dip to below Rs 60000 per candy because of slump in demand and in increased cotton sowing.
Views: Cotton prices have already cooled down to Rs 80,000-Rs85,000 per candy and forward contacts for October- November are priced at Rs 66000 to Rs 68000 per candy. The likely hood of an increased cotton production (at least 10% higher sowing) in the ensuing year is likely to further reduce the prices of cotton. We believe that lower cotton prices would be beneficial for the entire textile value chain and should lead to improved utilisation and better profitability for all players in the cotton textile products.
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