Cotton prices ruled steady backed by normal buying from mills on Friday. However, kapas price moved up by Rs 5 for a maund of 20 kg in Rajkot.
Gujarat Sankar-6 cotton for best quality traded at Rs 33,600-33,700 for a candy of 356 kg. Medium grade cotton traded at Rs 32,500-32,600. About 35,000 bales of cotton arrived in Gujarat and 1,21,000 bales (of 170 kg each) cotton across all markets.
Kapas price gained marginally by Rs 5 to Rs 780-880 for a maund in Gujarat Agricultural Produce Marketing Committee yards. Kadi delivery kapas price was Rs 850-885. A cotton broker said prices may gain next week as mills will buy on hopes that export will pick up.
“In Gujarat, cotton production is expected to be 33 per cent lower than last year, at about 8 million bales from 2.47 million hectares in 2012-13. However, cotton prices are expected to remain stable due to large stockpiles in China and at the world level,” said Maganlal Dhandhalya, associate research scientist at JAU.
The econometric analysis of cotton price in consultation with Domestic and Export Market Intelligence Cell and Tamil Nadu Agricultural University, Coimbatore revealed that prices from November to January may remain in the Rs 800-940 range a maund.