Indian cotton prices firm on export demand
Thursday, 15 November 2007
COIMBATORE (India), Nov 14 (sify.com): Cotton lint prices displayed a steady to firm trend in India during the first few days of the second fortnight of October, but the strong demand from exporters triggered the price levels towards the close of the month.
Seed cotton arrivals in the northern belt and central cotton growing region such as Gujarat, Maharashtra and Madhya Pradesh were on the rise, while the arrivals in Karnataka and Andhra Pradesh were said to have improved.
Lint prices, however, increased with the increase in arrivals.
While the export demand picked up, the domestic mills, according to the South India Cotton Association (SICA) found the scenario disturbing as high speed spinning units looked for quality cotton at affordable rates.
Trade sources envisage a higher crop volume in Maharashtra, but expect the volumes to hover around the present level in Gujarat in spite of inclement weather and reports of plant disease.
The expected average yield at 520 kg of lint/hectare in 2007-08 is however higher than the 2002-03 average of 302 kg/hec.
In Punjab, Haryana and Rajasthan, the Bengal Desi variety was quoted at Rs 1,550 to Rs 1,700 per maund spot.
The J 34 saw ginned touched Rs 2,000/maund.
In Gujarat, lint prices witnessed a steady to upward trend. Shankar 6 ranged between Rs 19,500 and Rs 20,500 per candy while V797 quoted between Rs 15,200 and Rs 15,600/candy.
Trade sources say that the export commitment was over 20 lakh bales.
Lint prices continued to remain firm in Madhya Pradesh. MECH1/H4 ranged in the Rs 19,200 and Rs 19,800 band/candy.
In Andhra Pradesh, Karnataka and Tamil Nadu, lint prices displayed a firm trend.
MCU5 was quoted between Rs 20,000 and Rs 21,300/candy, while DCH32 ranged between Rs 27,500 and Rs 30,000/candy.
Seed cotton arrivals in the northern belt and central cotton growing region such as Gujarat, Maharashtra and Madhya Pradesh were on the rise, while the arrivals in Karnataka and Andhra Pradesh were said to have improved.
Lint prices, however, increased with the increase in arrivals.
While the export demand picked up, the domestic mills, according to the South India Cotton Association (SICA) found the scenario disturbing as high speed spinning units looked for quality cotton at affordable rates.
Trade sources envisage a higher crop volume in Maharashtra, but expect the volumes to hover around the present level in Gujarat in spite of inclement weather and reports of plant disease.
The expected average yield at 520 kg of lint/hectare in 2007-08 is however higher than the 2002-03 average of 302 kg/hec.
In Punjab, Haryana and Rajasthan, the Bengal Desi variety was quoted at Rs 1,550 to Rs 1,700 per maund spot.
The J 34 saw ginned touched Rs 2,000/maund.
In Gujarat, lint prices witnessed a steady to upward trend. Shankar 6 ranged between Rs 19,500 and Rs 20,500 per candy while V797 quoted between Rs 15,200 and Rs 15,600/candy.
Trade sources say that the export commitment was over 20 lakh bales.
Lint prices continued to remain firm in Madhya Pradesh. MECH1/H4 ranged in the Rs 19,200 and Rs 19,800 band/candy.
In Andhra Pradesh, Karnataka and Tamil Nadu, lint prices displayed a firm trend.
MCU5 was quoted between Rs 20,000 and Rs 21,300/candy, while DCH32 ranged between Rs 27,500 and Rs 30,000/candy.