Cotton holds steady for 4th straight day in Karnataka amid select buying

NEW DELHI, June 30 (Commoditiescontrol) - Cotton prices ruled flat in the mandis of Karnataka for the fourth consecutive day on Thursday amid limited demand from spinning mills, while daily arrivals remained steady.

According to traders, the spinning mills of the state are procuring cotton only as per the requirement amid weak domestic as well as export demand for yarn. Furthermore, due to the shortage of cotton, most of the small mills in the state have already stopped production and the mills that are running are also cutting production. Hence the demand for cotton has also weakened. However due to the fall in the production of cotton in the current season, mills of the state are left with the cotton stock of less than a month's consumption on an average, while the arrival of new cotton crop in the mandis of the state will start in September-October. In such a situation, prices may remain move in a limited range ahead.

As far as weather is concerned, it is inclement in the cotton producing areas of the state.

A downtrend was seen in cotton and kapas prices in the domestic futures market today afternoon with April'23 futures contract of kapas on the NCDEX edged lower by 0.52 percent. The July month cotton contract on the MCX also declined by Rs 530 at Rs 43,030 per bale (1 bale -170 kg).

A total 100 bales (1 bale -170 kg) of cotton arrived in the state's mandis today, unchanged from a day before.

In the state mandis, the price of cottonseed was Rs 3,600 to Rs 4,300 and that of cotton was Rs 10,000 to Rs 11,000 per quintal today.

The price of 29.5/30 mm cotton quoted at Rs 96,000 to Rs, 98,000, 29.5 mm of cotton at Rs 94,000 to Rs 96,000 and 29 mm at Rs 92,000 to Rs 94,000 per candy.

(By Commoditiescontrol Bureau: +91-22-40015505)