Cotton futures double on MCX during Dec-Feb on coronavirus scare

Cotton futures contracts on the Multi Commodity Exchange (MCX) nearly doubled in the December 2019-February 2020 period, as the coronavirus outbreak in China has spread some panic among traders and industry, according to the exchange and traders. China leads the world in cotton production, followed by India and the US, and any disruption in production and supply from China is bound to send prices spinning out of hand, said traders.

Both volume and value of cotton futures contracts traded on the MCX nearly doubled between December 2019 and February 2020.

While the volume stood at 6.67 lakh bales as on December 31, or worth Rs 1,286.51 crore, the same spiked to 12.28 lakh bales valued at Rs 2,344 crore as of February 29, according to the exchange data.

However, this is a tad lower than the January volume when it stood at 13.27 lakh bales or Rs 2,621.16 crore. Traders and the MCX attributed the fall to stockpiling by the industry ahead of the long new year holidays in China in February, which though was a washout this year due to the epidemic that has so far killed over 3,100 people in that country alone and over 400 across 105 other countries.

Source: Money Control

Recent Posts

BRÜCKNER strengthens focus on environmental and energy technology

To further strengthen energy efficiency efforts, BRÜCKNER has set up a dedicated "Environmental and Energy Technology" department, led by Andreas…

23 hours ago

Spiber, Botto Giuseppe to launch 100% brewed protein yarn

Spiber. Botto Giuseppe to introduce a 100% Brewed Protein yarn. This partnership follows the successful development of this unique bio-based…

23 hours ago

New textile treatment enhances dye absorption

A recent study introduces an innovative approach to improving the dye absorption of natural fabrics using special chemical compounds called…

23 hours ago

Harsh Vardhan Jalan, Liva Fabrics unveil sustainable collection

Harsh Vardhan Jalan has collaborated with Liva Fabrics to launch a couture collection named 'Prana', which embodies sustainability and artistic…

2 days ago

AbTF introduces transparency standard for organic cotton

The Aid by Trade Foundation (AbTF) has launched a new transparency standard to improve the tracking of sustainable cotton throughout…

2 days ago

RapidMade launches innovative thermoformable carbon fiber

RapidMade, a company specializing in 3D printing, thermoforming, and engineering services, has launched Aerolite in partnership with West Lake Plastics.

2 days ago