MUMBAI (Commoditiescontrol) - Cotton prices dropped second straight day on Wednesday at the major market of North India in the absence of any encouraging advices from mills buying side. Cotton prices eased by Rs 30-60/maund today, while plunged around 150/maund since previous session.
Commoditiescontrol in its previous report has cautioned about prices that correction is inevitable in the counter as mills are incurring huge losses and has decided to cut cotton consumption.
Cotton Price At 50,000/Candy; Buy/Sell Or Hold? (Full Report)
The mills had turned sidelined from any bulk buying since early this week and also decided to slow down consumption of cotton by going for production holiday for 1-3 days.
Slow consumption will cut demand for cotton by the mills, which ultimately going to hurt prices. Further the availability of cotton likely to get in comfortable position as around 15 lakh bales of cotton is likely arrive next month.
Earlier domestic mills had contracted to import cotton from various destinations as domestic prices has turned uncompetitive.
NORTH INDIA
In Punjab, cotton J34 of (RG) variety in ready delivery was traded in the range of Rs 4,840-4,875/maund (89.70-90.40 US cents/pound). In Haryana, (RG) quoted at Rs 4,850/maund where as Rajasthan it was quoted Rs 4,800-4,850/maund for ready delivery. Cotton seed priced firm between Rs 3,175-3,200/100kg.
LOWER RAJASTHAN
Lower Rajasthan, In Khairthal and Alwar line cotton was quoted at Rs 48,500-49,000/candy, and Marwar line quoted at Rs 46,700-47,000/candy (88.70-89.30 US cents/Pound).
Note:
1 candy = 355.62 Kg
1 Maund: 37.3 Kg
1 USD= 67.11 India Rupee (Rs.)
(By Commoditiescontrol Bureau; +91-22-4001522)
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