ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Futures Trading in Cotton Ill-Timed Resumption

Futures Trading in Cotton: Ill-Timed Resumption THE cotton textile industry will need to pray hard to propitiate the weather gods for the timely onset of the south-west monsoon and its satisfactory progress thereafter which alone can help contain the bullish fervour which has firmly seized the cotton market of late and is threatening to assume alarm- ing proportions. The 1986-87 cotton season had begun on an extremely depressing note in that September saw cotton prices touching the lowest levels for nearly a decade. Currently, almost all varieties are quoted at the season's highest levels. The rise from the September lows ranges from 40 per cent to 80 per cent, the maximum rise being in respect of medium varieties. The latest official wholesale prices index (April) for raw cotton shows a rise of 50 per cent over its September 1986 low mark. Cotton prices have risen further since then. Even the most experienced persons in the cotton trade and industry had not imagined that the market would behave the way it has. How cotton prices will move during the lean period ahead is anybody's guess. Much will depend on the weather which remains unpredictable. The consequences of any unfavourable turn in the weather are too dreadful to contemplate.

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