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Dhimant Bhatt

Prices, which ruled up to Rs 23,200 per candy, are now quoted at around Rs 22,650-22,700 for ready delivery.

Mumbai , Oct. 7

FORWARD prices of raw cotton (also known as kapas) at the major marketing yards have begun to dip as new arrivals are picking up. Spot prices, on the other hand, remain firm, though they have eased a bit at the higher level.

"The market for ready bales is steady to bearish. The current arrivals have picked up and are around 2,500-3,000 bales daily in Saurashtra. These are expected to increase to about 7,000 bales a day by October 10-15 and to around 8,000-10,000 bales a day by the month-end," Mr Mitesh Shah, Kanam Cotton Brokers, said.

Prices of kapas, which had earlier gone up to Rs 2,900 per quintal, are now ruling at Rs 2,700 per quintal. These have had a direct effect on the ready bales prices as well. Prices, which went up to Rs 23,200 per candy, were now quoted at around Rs 22,650-22,700 per candy for ready delivery.

"The rain god has shown some mercy on the farmer after a continuous spell, there were reports of some pest attack, primarily the American bollworm on the crop in Gujarat, Maharashtra and Rajasthan. Now, the temperature in Gujarat is hovering at 37 degrees Celsius. This in turn has done well for the cotton crop in the State," Mr Shah said.

Forward market is bearish as predictions of good crop arrival are prevailing. There are also not many buyers in the market as they watching the market closely now.

Overall trading volume in forward deliveries was fairly good that was in the range of 30,000-35,000 bales, a leading broker said.

Currently, the average price for October 15 deliveries is Rs 22,500 a candy, for the whole of October 22,000-22,100, November 1-15 21,000-21,500 and for the whole of is November 20,500-21,000.

There were reports that a couple of big South India buyers bought nearly 5,000 bales in the range of Rs 22,300-23,000for deliveries ranging from ready to October 20, he said.

In North India, the total arrivals are put at 6,000 bales equivalent. Prices keep fluctuating with climatic changes in the region. Prices are being quoted higher at Rs 2,100 a quintal and are traded at Rs 2,080.

"Prices are not expected to keep firm for long as once the arrivals start picking up there will be selling pressure. Rajasthan crop arrivals have started in a small way with the daily arrivals pegged at around 200 bales," Mr Shah said.

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