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Aggressive demand from mills had put cotton prices at a record level and a similar trend was seen on Monday. However, compared with Friday's situation prices were ruling lower but showed an uptrend during the day.
Cotton was traded at Rs 48,000-48,500 a candy of 356 kg on Monday with a gain of Rs 500 in Gujarat. With this, raw cotton was also traded higher by Rs 10-20 at Rs 1,130-1,135 for 20 kg. Cotton price had reached Rs 50,000 on Friday due to short supply and strong demand by millers and exporters. But soon after, it came down to Rs 47,500-48,000 a candy.
About 45,000 bales arrives in Gujarat and 1.10 lakh bales to India in a day. Around 30 to 40 trucks arrives everyday from Maharashtra at Gujarat.
A Rajkot-based broker Mr Mayurbhai said, “Overall sentiments are positive for cotton as demand continues in the market.”
According to estimates made by The Southern India Mills' Association (SIMA), India's cotton crop will be 30.9 million bales which is 2 million less than the recent estimate by the Cotton Advisory Board (CAB) of India. SIMA has 400 members from South India belonging to the textile industry.
The Cotton Advisory Board on January 6 estimated the cotton production for the 2010-11 season to be 32.9 million bales (170 kg each) and the total domestic consumption to be 27.5 million bales.
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