MUMBAI (Commoditiescontrol) – Cotton prices firm in North India followed by Maharashtra, Madhya Pradesh and south India on Monday due to good demand from mills, while prices were flat in Gujarat.
Cotton prices in North India started the day on steady note, while late buying helped prices to trade higher by Rs 10-15/maund (37.3kg each) in evening trade.
Cotton is facing some resistance at the higher level as mills, especially smaller one are reducing their operation in order to avoid major losses due to huge disparity caused by sharp gain in cotton prices since April.
Cotton prices rose nearly 40 percent in the last 4 month, while finished product didn’t rose proportionately hurting their margins very badly.
According to trade sources “Mills having sufficient stocks are winner present, while financially weak mills are under stress as not only prices are higher, but the availability of fibre is scantly as well in the domestic market.”
The mills having better finance are importing cotton to meet their demand for the remaining season and in that instance around 12-15 lakh bales is likely to hit India shores in the month of August.
India cotton import during the current season, which begins from October 1, 2015 is likely to surpass 20 lakh bales due higher prices with tight availability, according to a veteran trader from Ahmedabad.
Stocks with mills are likely to be around 1-1.5 months, while stocks with MNC’s, CCI and private traders are just 18-20 lakh bales, which means that balance sheet is very tight.
In the meanwhile North India based stockists have sold around 1,260 bales (170kg each) cotton at Rs 4,640-4,690. Buyers was local mills. Moreover, cotton of 650 bales exchanged at Rs 46,250/candy in Lower Rajasthan for ready delivery.
Moreover new crop deal has stuck in Punjab at Rs 4,251 for November delivery.
SPOT COTTON PRICES IN MAJOR INDIAN MARKETS
|
MARKET/VARIETY
|
UNIT
|
Todays Prices
|
Yesterday’s Price
|
CHANGE
|
Punjab J-34 (RG) 27-28.5MM
|
Rs/maund
|
4,665-4,705
|
4,650-4,690
|
+5/10
|
Haryana J-34 (RG) 27-28 MM
|
Rs/maund
|
4,675-4,685
|
4,670-4,675
|
+5/10
|
Rajasthan J-34 (RG) 26.5-28 MM
|
Rs/maund
|
4,640-4,690
|
4,610-4,660
|
+5/10
|
Lower Rajasthan 28-29 MM
|
Rs/Candy
|
45,000-46,500
|
45,000-46,500
|
No Changed
|
Gujarat S-6, 30MM(3.8+MIC)
|
Rs/Candy
|
45,000-45,500
|
44,500-45,500
|
No Changed
|
Gujarat S-6, 29MM(3.6+MIC)
|
Rs/Candy
|
44,000-44,500
|
44,000-44,500
|
No Changed
|
Gujarat S-6, 28MM(3.5+MIC)
|
Rs/Candy
|
43,000-43,500
|
43,000-43,500
|
No Changed
|
Gujarat S-6, 27MM+(3.3+MIC)
|
Rs/Candy
|
40,000-41,200
|
40,000-41,200
|
No Changed
|
Gujarat V797 A Grade 22-24 MM
|
Rs/Candy
|
26,500-27,800
|
26,500-27,800
|
No Changed
|
Maharashtra, 30 MM (3.8+ Mic)
|
Rs/Candy
|
46,500-47,000
|
45,500-46,500
|
+200/300
|
Maharashtra, 29 MM (3.8+ MIC)
|
Rs/Candy
|
46,000-46,400
|
45,000-46,000
|
+200/300
|
Maharashtra 29 MM (3.5+MIC)
|
Rs/Candy
|
45,000-45,500
|
44,800-45,500
|
+200/300
|
MP-MECH A Grade 30MM (3.8+ MIC)
|
Rs/Candy
|
45,500-46,000
|
45,500-46,300
|
+200/300
|
MP-MECH A Grade 29MM (3.6+ MIC)
|
Rs/Candy
|
44,500-45,300
|
44,000-45,300
|
+200/300
|
AP - Telangana 30-31 + MM(3.0 - 3.8+)
|
Rs/Candy
|
44,500-47,500
|
43,500-46,500
|
+400/500
|
Karnataka - 29/32 +MM
|
Rs/Candy
|
44,000-47,000
|
43,500-46,000
|
+400/500
|
Note: 1 candy = 356kg | 1 maund = 37.3kg
|
Note: MH - Maharashtra; MP - Madhya Pradesh; AP - Andhra Pradesh
|
(By Commoditiescontrol Bureau; +91-22-40015533)