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Dhimant Bhatt

Mumbai , Oct. 20

READY cotton prices are expected to rule firm till early-November, thanks to domestic demand as well as fairly good export enquiries from Europe and Far-Eastern countries.

"Cotton prices are in the range of Rs 22,600-22,800 per quintal, for Gujarat Shankar new variety. Though, the rates have decreased slightly from a high level. The decrease in cotton prices is not proportional with the decrease in cottonseed prices," Mr Rajesh Bhai, a local dealer said.

"The market for ready bales was overall firm last week on some good buying interest from big northern mills to cover their export requirement," he said.

There are unconfirmed reports in the market that some export business (about 30,000-35,000 bales) has been done around 62-68 cents per pound in past few days.

"There are sizable numbers of export enquiries in the market as well which might be an important factor in keeping the market prices firm even while arrival pressure increases," Mr Mitesh Shah, a Gujarat-based dealer said.

Northern merchants are definitely building long positions. Big northern mills are only selective buyers and southern buying has stopped. Some export business in J-34 S/G also being reported for China and Bangladesh.

Forward prices for October 25-30 deliveries are Rs 22,300 for Shankar grade, November — first week deliveries are Rs 22,200 and November 20-25 was Rs 22,000.

"Market experts feel the market shall not go down below Rs 22,000 till November 20-25 owing to the good demand foreseen from most of the big buying mills of North and South India," Mr Shah said.

In Gujarat, arrivals are good in the range of 8,000-9,000 bales per day. Good arrivals in the North are all being lapped up. In North India, the total arrivals were put at 16,000 bales equivalent. All India figure reached to 50,000 bales per day.

International cotton prices remained extremely firm last week. The Cotlook A index as on 17th Oct was 73.25 cents per pound, up 445 points from last week and the Cotlook B index was 71.65 cents, up as much as 500 points from last week, for north Europe c.i.f terms.

The NYCE contract as on October 17, for December closed at a record high of 75.52 cents (up 398 points from last week) and for March at 78.33 cents (up 447 points from last week).

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