Cotton Price: Surges to 9-Week High on MCX Amidst Supply Concerns
Cotton prices have soared to a 9-week high on the Multi Commodity Exchange (MCX), triggered by growing supply concerns. This surge in cotton prices reflects the heightened dynamics of the commodity market. Additionally, cotton oil seed cake on the National Commodity & Derivatives Exchange (NCDEX) is also witnessing an upswing, following a 4-month decline. The latest uptick has pushed cotton oil seed cake to a peak not witnessed in 12 weeks. Moreover, in the United States, cotton prices are inching closer to their highest point in 10 months, underscoring the global trend of price appreciation due to supply uncertainties.
Analyzing the movement of cotton on MCX, August has witnessed a commendable 3% surge, contributing to a 2% gain over the span of 3 months. Impressively, the year 2023 has witnessed an astounding 84% increase in cotton prices on MCX, further substantiated by a substantial 56% leap in the past year.
Shifting our focus to cotton oil seed cake on NCDEX, the upward trajectory continues with an impressive 11% surge observed in August. Over a 3-month period, this commodity has shown a 2% increment. However, the year 2023 has brought about a 13% decline in cotton oil seed cake prices. Notably, a significant 55% drop has been observed over the past year.
In a significant development, the government has extended the date of the Quality Control Order 2023 (QCO), aligning with the spirit of the CNBC Awaaz campaign. As a result, the implementation of QCO has been rescheduled to 27th November, providing a critical extension from the earlier intended date of 28th August. This extension aims to benefit the entire value chain by enhancing product quality, boosting production, and elevating industry branding, consequently fostering exports.
Furthermore, noteworthy changes are set to be introduced in trading hours on NCDEX, effective from August 14. Trading will be conducted from 10 am to 5 pm, with a pre-open session scheduled from 9:45 am to 10 am. This adjustment reflects the dynamic nature of commodity markets and aims to accommodate the evolving needs of market participants.
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