Cotton firms up in Gujarat as demand improves at lower prices

NEW DELHI, June 28 (Commoditiescontrol) - Cotton prices quoted higher in the mandis of Gujarat on Tuesday as demand from spinning mills improved at decreased prices, while daily arrivals remained unchanged.

According to traders, there has been a continuous decline in the prices of cotton in the global market, but in the domestic market, there is limited stock of cotton remaining with the mills, while the cotton which is currently available in the producing mandis, is of very low quality. Hence, the demand from the mills at a lower price has led to an improvement in the cotton prices. According to the India Meteorological Department (IMD), the rainfall in the state in June has been less than normal, with the Gujarat region has received 49 per cent less rainfall than normal from June 1 to June 27, while Saurashtra and Kutch have received 44 per cent less rainfall during this period, which is a matter of concern for cotton farmers. Therefore, limited variation is likely to remain in cotton prices in the domestic market.

As far weather is concerned, it remained inclement in the cotton growing areas of the state.

A mixed trend was seen in cotton and kapas prices in the domestic futures market today with April'23 futures contract of kapas on the NCDEX edged lower by 1.41 percent. While the July month cotton contract on the MCX climbed by Rs 410 at Rs 41,920 per bale (1 bale -170 kg).

Today the daily arrival of cotton in the producer mandis of the state stood at 2,000 bales (1 bale -170 kg), unchanged from a day before.

Cottonseed prices ranged from Rs 600 to Rs 825, while kapas at Rs 1,900 to Rs 2,300 per 20 kg in the state's mandis. Kapas of fardar quality quoted at 1,500 to 2,000 per 20 kg.

The price of A grade cotton was at Rs 95,000 to 96,000 per candy, B grade cotton at Rs 94,000 to 95,000 and average grade cotton at Rs 92,000 to 93,000 per candy in the state's mandis.

Mills of South India did not do any business of cotton today, while godown stock cotton quoted at Rs 95,000 to 1,00,000 per candy.

The price of new cotton of V797 variety was quoted at Rs 55,000 to Rs 58,500 per candy, while the price of cottonseed of V797 variety was Rs 4,850 to Rs 4,950.

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