MUMBAI(Commoditiescontrol) - Cotton markets were on a positive note opening this week across India although arrivals continue to remain sluggish with no signs of currency crunch easing fast. Demand remained firmly flat like in the previous week.
The major factor driving prices up was the slow pace of raw cotton (kapas) arrival across mandis. Meanwhile ginners, facing price disparity, were holding back in anticipation of better prices later. Usually, demand is at their peak levels at this time of the season.
Further, demand sustained as MNCs and local mills were active in buying their immediate requirement supporting price to rise on Monday. However, demand from exporters was limited due to international buyers preferring to stay sideline amid uncertain market outlook.
Export prospects were bright on falling Rupee against the US Dollar, which settled unchanged on Friday at 67.96 and opened 15 paise down at 68.15 on Monday morning.
On the MCX market, the benchmark January cotton contract settled marginally down 0.40 percent or Rs 80 at 19,950/bale tracking the global trend last weekend. Open interest was marginally up 0.3 percent at 5,869 lots while volume fell 50 percent to 2,467 lots.
Raw Cotton (KAPAS):
Raw cotton prices marginally improved Rs 100 quintal in North India at Rs 5,400-5,700/quintal and Gujarat(Rajkot) at Rs 5,250-5,750/quintal while they rolled over in other markets.
Cotton arrivals across mandis increased by 4 percent or 5,500 bales at 1.395 lakh bales. Arrivals improved, particularly in South India by 6,000 bales at 0.31 lakh bales whereas they declined 1,000 bales in Central India at 0.91 lakh bales. Marginal increase of 500 bales was seen in North India receiving 0.175 lakh bales. (Full Report)
Farmers limited their selling in anticipation of better price in near future as they see amid good demand ahead from traders and surging futures market.
The benchmark April contract on NCDEX inched up 0.1 percent or Re 1 to settle at Rs 988.5/per 20kg on Friday. The contract was traded in the range of Rs 980-995/20 kg.
Open interest declined 2 percent at 9,655 lots and sharp decline in volume by 21 percent at 4,868 lots indicated market players were uncertain of the direction of the market and opted to trade intra-day.
The contract last traded today (17:07 IST) at Rs 999.50/20 kg.
Meanwhile, scattered rainfall reported in the some parts of Punjab and Haryana on Saturday and Sunday may affect arrivals in coming days. However, the weather conditions today were reported as clear this morning.
(By Commoditiescontrol Bureau; +91-22-40015534)