The Hindu Business Line : Cotton prices remain firm

Select cotton varieties such as J-34 and Bengal Deshi have firmed up by Rs 300/600 per candy (356 kg) in the last 10 days. Other prominent varieties like Shanker, Kalyan, LRA, H-4, MECH and MCU-5 also increased by Rs 200/300 per candy, trade sources said.

"Most of the buyers are adopting a wait-and-watch policy on fresh buying and sellers are not keen to sell at the current level," Mr Mitesh Shah of Kanam Cotton Brokers said.

"Cotton prices are not likely to come down in the near future. Sellers are waiting for another rally when they would like to offload most of their stocks," a leading trader said.

"Exporters are out of the market owing to disparity and availability of alternative growths in the international market at competitive rates," Mr Shah said.

Most experts predict arrivals will continue till April. Arrivals of good quality (28 mm+) cotton should cease in another 10 to15 days from now.

At present, all-India inflows are around 60,000 bales daily. This week is crucial for Indian cotton prices, as nearly 70 per cent of the crop has been marketed. Export markets are dull while some business is in the pipeline for imports. West African, CSA and Brazilian cotton sales are imminent in India.

Nearly 115-lakh bales (each of 175 kg) of cotton have been arrived (pressing and loose cotton both inclusive). The season started with a carryover of about 31 lakh bales.

Total supply is placed at 1.46 crore bales. Against this, mills consumption has been about 75 lakh bales. Roughly 35 to 40 lakh bales are yet to arrive.

Unless large imports are forthcoming with no further exports, the carryover at the end of the season is not likely to be larger than 15/17 lakh bales.