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Indian cotton may reverse trends & regain one year-highs
Sep '12
Indian cotton traders are not perturbed over the fact that cotton prices, particularly of the most exported variety – Shankar-6 have dipped by around five percent in the last fortnight, as they expect the market to regain losses and move further up.

Shankar-6 cotton prices which were quoted at around Rs 38,125 per candy (1 candy = 355 kg) on August 23 were assessed around Rs 36,225 per candy on September 5, down a little more than 5 percent.

Arun Dalal – an Ahmedabad and India based cotton expert attributes the same to a slowdown in off-take from mills in Southern India due to a week long power-cut and also to lessening of export orders.

However, he is very optimistic that cotton prices will once again regain lost ground very soon and may even cross the psychological barrier of Rs 40,000 per candy last seen in mid-October 2011, just at the beginning of the 2011-12 season.

Considering the late rains lashing major cotton producing regions like Gujarat, Maharashtra and Andhra Pradesh, he is of the opinion that the crop may be delayed by a month or so.

Click here to view and compare daily cotton price trends.

Fibre2fashion News Desk - India

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