Kapas futures drop on weak spot demand

NEW DELHI: Kapas prices slumped by Rs 24.50 to Rs 809 per 20 kg in futures trading today following all-round selling by traders in tandem with weak physical markets sentiment.

Marketmen said increased supply, sparked by weak demand from fibre units and textile industries, mainly dampened the trading sentiments.

Apart from this, falling demand of cottonseed from cattle-feed makers due to cheap availability of other alternatives was another reason for the bearish trend, they added.

At the National Commodity and Derivatives Exchange platform, kapas prices for February contract plunged by Rs 24.50, or 2.94 per cent, to Rs 809 per 20 kg, with an open interest of 52 lots.

Most active second contracts for April too looked down by Rs 2, or 0.24 per cent, to Rs 842.50 per 20 kg, in an open interest of 8,946 lots.