Weak overseas demand and continued trade disruptions caused by the coronavirus scare are putting pressure on cotton prices in the international and domestic markets.
Trade insiders believe that the global factors coupled with increased arrivals in the domestic markets will put more pressure on prices, which have already corrected by about 8-10 per cent in the past one month to touch ₹38,500 a candy (each of 356 kg of ginned cotton of 29 mm variety).
Notably, international cotton futures have corrected from 70.69 cents for ICE May contract on January 29, to 62.43 cents on March 6, indicating a fall of about 12 per cent.
The Cotton Association of India (CAI), the apex trade body, on Friday retained its crop outlook at 354.5 lakh bales (each of 170 kg) for 2019-20.
Arun Sekhsaria, Managing Director of DD Cotton, which is a leading cotton exporter, told BusinessLine that from