Commodities

Slack offtake, rising inflow hold cotton steady

Our Correspondent Rajkot | Updated on October 29, 2012 Published on October 29, 2012

BL30_COM2_COTTON

Cotton prices remained unchanged on weak demand and increasing arrivals on Monday.

Trading activity was slow in Saurashtra area as there was a one-day strike.

New cotton was offered at Rs 33,500-33,900 a candy of 356 kg in Gujarat. A-grade S-6 cotton ruled at Rs 33,500-34,000 and B-grade cotton at Rs 33,300-33,500 .

Prices of V-797 were at Rs 27,500-28,000.

About 12,000-13,000 bales (of 170 kg) of cotton arrived in Gujarat and 52,000-53,000 bales arrived in India.

In Maharashtra, new crop fetched Rs 33,500-34,000.

A-grade low micronaire quoted at Rs 33,200-33,500 and A grade high micronaire cotton 29+ MM quoted at 33,500-33,800.

A Rajkot-based cotton broker said, “Export demand was weak and mills also buy only need-based. Moreover, arrivals are increasing. Farmers sell cotton for money as Diwali festival is fast approaching. However, prices may not decline as quality of new cotton is still not up to the mark.”

Recently, Saurashtra Ginners Association estimated about 7.5-8 million bales cotton production in Gujarat against last year’s 12 million bales.

Saurashtra’s cotton production may decline by 55 per cent to 3-3.5 million bales this year.

On the ICE US, the fibre was traded at 72.51 cents/lb.

Published on October 29, 2012
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