Kapas futures down on weak spot demand, rising inventories

Kapas prices softened by Rs 12.30 to Rs 690 per 20 kg in futures trading today following reports of a rising seasonal demand in growing regions.

At the National Commodity and Derivatives Exchange, kapas prices for February delivery moved down by Rs 12.30, or 1.75%, to Rs 690 per 20 kg, with an open interest of 118 lots. 

Likewise, its price for March delivery eased by Rs 11.60, or 1.64%, to Rs 695 per 20 kg, with an open interest of 15 lots.

Market analysts said fall in demand from cattle-feed and cotton industries mainly pulled down the kapas futures prices. They added that mounting of ready stocks in the spot markets also influenced the trading sentiment.