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Cotton Association of India asks MCX to prevent speculation in Cotton Futures

-The Hindu Business Line

CAI asks officials to take "immediate steps to avoid distortions in cotton prices."

Cotton trade body Cotton Association of India (CAI) has raised concerns about alleged speculative trades taking place on the Multi-Commodity Exchange (MCX) platform. Citing a sharply lower open interest (OI) in MCX Cotton Futures for the May 2022 contract, CAI has flagged serious distortions in cotton prices causing speculative movements and asked the Exchange to take measures to prevent it.

In a letter to MCX, the CAI stated that it had noticed that the May month cotton futures OI came down to below 3,500 lots as on May 13, which is equivalent to 87,500 cotton bales (each of 170 kg). 

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