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Cotton prices plunge, may hit more lows
20
Apr '11
Raw cotton prices which had reached historic highs of around Rs 61,625 per candy (1 candy = 356 kg) in the last few days, have slipped by as much as 11 percent till yesterday.

Shankar-6 raw cotton price trends closed at Rs 54,625 per candy, yesterday from a peak of Rs 61,625 per candy touched in end-March.

One of the main reasons is that the cotton season is nearing its end and coupled with low demand and low-quality of raw cotton arriving in the markets, prices are taking a beating.

Cotton prices are expected to correct and witness a downside in the coming days and may also touch Rs 50,000 per candy if demand for the white gold declines.

It is expected that demand may revive once the price stabilizes, as mills may replenish their stocks to enable them to stock inventories to carry them through the beginning of the next season.

Fibre2fashion News Desk - India


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