Demand from spinners and exporters to fulfil yarn export orders pushed up cotton on Monday. According to traders, the fibre crop may gain during the week as arrival is marginally down.
The A grade Sankar-6 variety traded higher by Rs 200-300 to Rs 34,500-34,900 a candy of 356 kg, while B grade was Rs 34,100-34,300 in Gujarat. The V-797 variety was offered at Rs 25,800-26,000 a candy. About 45,000-48,000 bales of 170 kg each arrived in the State, while 1.85 lakh bales arrived in the rest of the country.
Exporters have increased purchases expecting higher demand after Chinese New Year holidays, a broker here said. Strong export demand for yarn also pushed buying by local mills.
Traders expect exports to Southeast Asia to more than double in 2013, which could compensate to some extent for a fall in demand from China, the world’s largest consumer and traditionally the biggest buyer of the Indian cotton.
This financial year, yarn exports are expected to touch a record high owing to demand from China. According to a Textile Commissioner Office source, in 2012-13, about 1,000 million kg of yarn was expected to be exported. Earlier, yarn exports were estimated at 920 million kg. Last year, exports stood at 827.68 million kg.
Keywords: Cotton rates