Cotton prices traded marginally higher in Gujarat and other parts of the country with demand being nominal from mills.

Hope of export demand kept the sentiment positive in the market.

According to traders and brokers, cotton may gain in the coming days on expected export demand.

Gujarat Sankar-6 cotton increased Rs 100 to Rs 33,700-33,800 a candy of 356 kg.

About 40,000 bales (of 170 kg each) cotton arrived in Gujarat and 140,000 bales arrived in India.

Kapas price stood at Rs 840-870 for 20 kg at Kadi delivery in Gujarat.

About 15,000 -16,000 bales from Maharashtra arrived in Gujarat quoting Rs 850-875.

A Rajkot-based cotton broker said: “Mills demand was normal today and we are expecting good demand on the export front in coming days. Moreover, restricted arrivals in the State may support the price to go up in coming days.”

“Demand from Bangladesh emerged last week as factories there are ramping up production to meet expected rise in orders from Europe and the United States during approaching Christmas and New Year holidays,” said a trader based in Ahmedabad.

According to a Kadi-based trader, many farmers are holding on to their produce in the hope of better returns and this has given some support to prices so far.

(This article was published on December 10, 2012)
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