MUMBAI (Commoditiescontrol) – Cotton prices increased Rs 200-600/candy in Central India and surged nearly Rs 1000/candy in South India triggered by sustained demand amid slower arrivals.
Sluggishness was witnessed in cotton arrival today as they were short of 7,000 bales in Central India receiving 79,000 bales compared to previous day. Maharashtra witnessed a fall of 5,000 bales at 40,000 bales while Gujarat and Madhya Pradesh witnessed a fall of 1,000 bales receiving 34,000 and 10,000 bales, respectively.
Cotton arrival in South India was steady at 24,000 bales. Andhra Pradesh received 20,000 bales while Karnataka received 4,000 bales.
The surging futures price on the NCDEX prompted farmers to hold back stock creating an shortage in supply during this peak season. The April contract settled higher 1.77 percent at Rs 965/per 20kg on Monday.
Good demand for cotton seed and oil cake amid slow arrival of Kapas kept price higher on the NCDEX market. The February contract of cotton seed oil cake on the NCDEX settled higher by 3.11 percent at Rs 2,120/quintal on Monday.
Meanwhile, demand from MNCs and buyers from North India was another factor pushing price higher in Maharashtra (Nagpur Line) by Rs 600/candy at Rs 41,000-41,200/candy.
Small and medium spinning mills were actively purchasing to meet their term requirements as price increased Rs 1000/candy in Andhra Pradesh (Bhainsa).
Exporters were buying on limited basis as international markets were slowly resuming from New Year holidays. The export prospects for Indian cotton is still positive as depreciation in rupee provided ample support. The currency plunged 30 paise to settle at 68.22/$ on Monday breaching the 68 mark at the beginning of the new year.
Meanwhile, various MNCs have quoted offers for March delivery ranging Rs 42,300-42,850/candy (ex-gin) in Maharashtra (Vidharbha Zone).
(By Commoditiescontrol Bureau; +91-22-40015534)