Cotton prices ruled stable on Monday, bringing some respite from the bearish trend that has been witnessed this month. The respite came as traders in Gujarat are eyeing exports. Fresh buying in good quality cotton also supported the price.

Gujarat Sankar-6 good quality cotton was traded at Rs 53,000-55,000 a candy of 356 kg. The price of average quality was Rs 51,000-53,000 and inferior quality cotton was traded at Rs 45,000-50,000 a candy.

About 20,000-22,000 bales arrived in Gujarat and 60,000 bales arrived in India. Kalyan cotton was ruling at Rs 37,000-41,000 a candy.

Price of raw cotton was Rs 1,100-1,262 for 20 kg and Kalyan raw cotton was traded at Rs 325-350.

A Rajkot-based broker, Mr Mayurbhai Patel, said: “Cotton is ruling stable now and everyone is eyeing the next meeting of the Cabinet Committee on Economic Affairs for export. If the Government allows export then price will increase; otherwise downtrend will resume.”Due to lower price of cotton, arrival from Maharashtra has decreased this month.

Around 25-30 trucks arrived in Gujarat from Maharashtra and price is Rs 900-1,000 for 20 kg.

Traders said that the quality of Maharashtra cotton is good. Moreover, it is not profitable for them to come and sell in Gujarat as they are getting same price in Maharashtra, leading to lower arrivals.

Cotton prices had run up to Rs 64,000 a candy at the beginning of this month on hopes that the Centre will allow exports. On the other hand, huge yarn inventory with spinning mills has affected domestic demand.

Related Topics
comment COMMENT NOW