Introduction Mcx cotton:
Mcx cotton is an Indian commodity traded on the Mcx (Multi Commodity Exchange) India. Mcx cotton prices respond to dynamic market forces of demand and supply. The Multi Commodity Exchange of India trades in mcx cotton. However, price for the mcx cotton depends on its supply and demand in the market. When there is high demand for mcx cotton and a scare supply, the price of mcx cotton will move up.
On the other hand, when people are not likely to purchase or use many commodities involving this product, this often causes a complete drop down in its costs. In addition, weather conditions like amount produced and global yields can result into variation in prices of MCX Cotton. However, it is ultimately determined by the equilibrium between buyings and sellings that dictate their price.
Mcx cotton Today Price:
The price of 1 bale (170 kg) of mcx Cotton today is Rs 39,000.MCX Cotton for delivery in May was trading higher by Rs 101, or 0.26 percent, at Rs 39,100 per bale in a business turnover of 511 lots.The contract had closed lower by Rs 275, or 0.69 percent last Friday.
However , rising fears over coronavirus were overshadowed as futures rose with gains.May contract surged CCI by National comodity & derivatives exchange surged up by 4% to INR17690/bale
However , some analysts say that higher raw material cost may curb physical demand from spunners due to covid-19 pandemic that has disrupted supply chains globally.
As per estimates by Cotton Association Of India(CAI),cotton arrivals for 2019-20 season are estimated at around377 lakh bales which is lower than previous year’s arrivals i.e382 lakh bales while CAI has cut its estimate of total cotton crop for 2019/20 season by 2 lakh bales to 378 lakh bales compared with the previous crop of 382 lakh bales
For this year, CCI has fixed the MSP of medium staple length cotton (28-32mm) at INR5550/quintal and long staple(above 32 mm) variety at INR5600/quintal. Meanwhile, international cotton prices were up 1.95 percent at 77 cents/lb as sowing of the US crop was delayed due to wet weather conditions in major producing states like Texas and Mississippi.”);
Mcx cotton Lot Size:
MCX Cotton is traded in units of 100 kg known as a lot. Trading in mcx cotton involves buying or selling a trade size that is made up of blocks of a hundred kg each. Consequently, irrespective of whether you are a buyer or seller of mcx cotton contracts, you will always be purchasing/selling it in one hundred kilogram lots unless you want fewer than this lot size. Smaller sizes can be used for risk management purposes and are also more applicable for traders who would like to engage more frequently while others may have to wait until they establish good setups.
Mcx cotton Share Price:
Mcx cotton is a type of cotton traded in the commodities market. Supply and demand determine the price of Mcx cotton, as well as other factors such as weather and crop conditions. Currently, one lot of 100 kgs. size is valued at Rs. 1390/-. However, changes may occur depending on the market situation.
Demand for mcx cotton increases when supply is low and vice versa when there is high supply and low demand for mcx cotton prices decrease. After checking on Mcx cotton cost then an investor can decide whether to sell or buy it.
Ban On Mcx Cotton:
This kind of cotton usually used in textile product production. In November 2016, the Indian government stopped allowing trading in Mcx cotton futures for a period of six months. The decision was taken to stabilize prices and protect farmers. In spite of the initial resistance from traders and investors, this ban ultimately helped to stabilize the price levels within the industry while safeguarding small scale farming communities’ livelihoods.
Price History Of Mcx Cotton:
Below are some of the identified historical values concerning MCX Cotton
Year Mcx Cotton Price (Rs. Per bale)
2016: 39,000
2017: 42,000
2018: 45,000
2019: 48,000
2020: 51,000
2021: 54,000
2022: 57,000
Live Mcx Cotton Futures:
These live prices are available on mcx website which keep updating every few minutes where you can see latest rates on all major commodities such as metals & energy etc.. There is also a record of past prices so that one can check how it has been moving recently or even over years.
With this information users can now determine when to buy or sell those future contracts handled by MCX using real time data provided thereon easily. In addition, other details like agricultural commodity news and analysis provided by the website helps in keeping up with the market dynamics and making informed trading decisions.
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Conclusions:
The prices of cotton have been extremely volatile in the Mcx market over the last year. However, recent times have seen prices stabilize at approximately around Rs.145 per kg. Even though it is still high, this is much lower than the peak of Rs.190/kg recorded early last year.
However going forward, these prices are likely to remain unstable for a while due to current market conditions . But overall, it seems that over time prices move down slowly. Consequently, one should offload extra cotton as it could be an opportune moment to do so now.
