Cotton lint collapses on re-selling
3 Jul 2008 1:08 pm
Mumbai - Cotton lint prices tumbled sharply by Rs 600-Rs 1,000/candy as exporters resorted to heavy re-selling in the market Thursday. Sentiments have also been worsened on rumours that the government was considering banning cotton exports from the country, market participants say. Moreover, traders are shying away from spot deals due to the ongoing nation-wide strike of transporters.
Traders say, the sharp overnight decline in cotton due to fund selling in the international market also had its adverse effect on the domestic market.
Meanwhile, the report on sowing of cotton is expected to be released soon. And since rainfall has been good so far in cotton-growing areas, the report is more likely to show some good figures. Therefore, stockists are looking to clear their stocks, market participants add.
3 Jul 2008 1:08 pm
Mumbai - Cotton lint prices tumbled sharply by Rs 600-Rs 1,000/candy as exporters resorted to heavy re-selling in the market Thursday. Sentiments have also been worsened on rumours that the government was considering banning cotton exports from the country, market participants say. Moreover, traders are shying away from spot deals due to the ongoing nation-wide strike of transporters.
Traders say, the sharp overnight decline in cotton due to fund selling in the international market also had its adverse effect on the domestic market.
Meanwhile, the report on sowing of cotton is expected to be released soon. And since rainfall has been good so far in cotton-growing areas, the report is more likely to show some good figures. Therefore, stockists are looking to clear their stocks, market participants add.