Commodities

Cotton may fall in 2 months on lower Chinese orders

Our Correspopndent Rajkot | Updated on December 23, 2011 Published on December 23, 2011

cotton





While higher arrivals and lower demand pulled down cotton here on Friday, it gained in North Indian markets on lower arrivals and demand from mills. According to market sources, cotton prices are likely to fall substantially in the next two months as the biggest importer, China, cuts orders at a time when local supplies are set to peak and Indian buyers remain on the sidelines as demand for yarn is weak.

The Sankar-6 variety was down Rs 300 to Rs 33,800-33,900 a candy of 356 kg. During the past five days, cotton has shaved off almost Rs 1,000 a candy in Gujarat. About 60,000-70,000 bales of 170 kg each arrived in Gujarat. Kapas or raw cotton also decreased by Rs 20-25 to Rs 845-850 for a maund of 20 kg.

Arrivals in Maharashtra increased to about 1,500 trucks and sold at Rs 800-830 for delivery to Kadi.

Traders said spinners have boosted purchases after improvement in yarn offtake. Earlier, they were buying only to meet daily needs, while now they are covering for two days. In North India, 28,000 bales of new cotton arrived.

Ready delivery RG cotton traded at Rs 3,385-3,430 a maund in Punjab, at Rs 3,305-3,325 a maund in Haryana and at Rs 3,310-3,320 a maund in Rajasthan.

Published on December 23, 2011
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