The Hindu Business Line : Cotton increases Rs 500 a candy

Arrivals are from Gujarat (55,000 bales), northern region (25,000 bales), Madhya Pradesh (15,000 bales), Maharashtra (18,000-20,000 bales), Karnataka (8,000 bales) and Andhra Pradesh (12,000 bales).

"The market is surely not supply driven, it is definitely demand driven," Mr Mitesh Shah, a cotton trader said.

While the crop estimate figures were being speculated by suppliers to be at a very low of 200 lakh bales, the Cotton Advisory Board's projection on December 7 came as a relief to the consumers.

It has estimated the crop at 243 lakh bales, sources said.

All-India cumulative arrivals till December 8 could be 58 lakh bales.

"While all domestic mills were waiting for more arrivals in Maharashtra, the market witnessed an uptrend with prices rising Rs 500-700 a candy (356 kg) at all major centres," he said.

A substantial quantity of high grade — good quality cotton has been exported. Exporters are refraining from buying at rates over Rs 18,000 a candy for good quality cotton like Shankar.

Domestic mills started buying in good quantity since last week, which helped the market to move further up to Rs 18,500.

Fresh buying for stocking may start once the arrivals reach their peak at 1.5-lakh bales a day, a trader said.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page