Cotton futures decline on profit-booking

Cotton futures showed a negative trend on MCX as speculators booked profits after recent gains. Subdued demand in the spot market and bearish cues from overseas markets also helps to lower the prices. Meanwhile, Indian cotton yarn industry feeling the pressure as China has reduced its cotton yarn import after the announcement of China’s new cotton policy. India has witnessed drop by 25% in the month of April which is the effect of Chinese policy. The contract for May delivery was trading at Rs 21090.00, down by 0.09% or Rs 20.00, from its previous closing of Rs 21110.00. The open interest of the contract stood at 5412.00 lots. The contract for June delivery was trading at Rs 21370.00, down by 0.05% or Rs 10.00, from its previous closing of Rs 21380.00. The open interest of the contract stood at 2949.00 lots on MCX.