MUMBAI (Commoditiescontrol) – According to the survey conducted by commoditiescontrol.com, the chances of cotton (29mm- 3.6 micronaire) prices crossing 3,5000/candy (356kg each) level by end-July 2015 is less likely.
This survey, which was conducted between April 11-12, and included various participants (382 traders, analysts, ginners, brokers, spinners and mills). While majority respondent expect prices to stay below Rs 35,000per candy, a minority of respondent expect prices to cross Rs 40,000 level.
Of the total sample size, around 41per cent of respondent representing the industry, opined that cotton will trade below Rs 35,000/candy by July-end. Meanwhile, 39 per cent of people believe cotton to trade in the range of Rs 35,000-37,000/candy. The least participants i.e. 7 per cent said that cotton prices will rule above Rs 40,000/candy by the end of July.
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A major mill owner on the basis of anonymity shared his personal view on the market, said that cotton prices will trade between Rs 35,000-37,000 as higher prices will dent demand from spinners. Domestic spinners will find it difficult to survive in case prices rule above Rs 37,000/candy, he added.
He said “domestic demand in garments is unlikely to improve in the near months due to absence of festive season.
Most of the participants in the survey who put their view that prices will rule below Rs 35,000/candy by July end, provided that the monsoon delay would help prices to move in the range of Rs 35,000-37,000/candy.
Interestingly, industry players don’t expect change in sowing pattern for the next crop. They have pointed out that the sowing intention for next crop will be an important factors to watch for. They don’t expect farmers to shift to other crops due to poor remuneration. Cotton acreage is likely to be more or less similar as it was in 2014-15, they emphasized.
Role of state run Cotton Corporation of India (CCI) will be very crucial at current juncture as textiles associations in the country have urged government to direct CCI to offload stocks due to shortage of good quality cotton in the country.
Analyzing the response to survey, cotton will surely face some tough days ahead. Its strength will depend upon its ability to withstand changing forces, i.e. weather, sowing pattern and CCI stock release, to weave these factors into a better tomorrow.
(By Commoditiescontrol Bureau; +91-22-61391533)
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