Kapas prices hit a daily upper limit of four per cent at Rs 707.30 per 20 kg in the futures trade today on the back of sustained buying by stockist amid low inventories.
Market analysts said traders continuously enlarged their holdings due to low inventories which pushed up the kapas prices to hit a daily limit set by the exchange authorities.
Reports of inadequate monsoon rains in cotton-producing areas further influenced the market sentiment, they added.
At the National Commodity and Derivatives Exchange, kapas for February delivery shot up Rs 27.20, or 4%, to Rs 707.30 per 20 kg, with an open interest of 96 lots. Its prices for March delivery also spurted by the same margin to Rs 706 per 20 kg, with an open interest of 13 lot.
Kapas for delivery in April advanced by Rs 14.40, or 2.09%, to Rs 704 per 20 kg, with an open interest of 4,831 lots.
