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Indian seed cotton arrivals continue to plunge
May '13
The All India kappas [seed cotton] arrivals have started dropping down drastically and it is approximately 40,000 bales per day.

There is a strange situation in our Textile industry at the moment. Mills with minimum cotton stocks are finding it difficult to source good quality cotton from ginners as they are not interested to sell their stock lots right now because of the weight loss incurred due to severe heat conditions experienced all over India.

Ginners want to sell their cotton stocks only after a good rainfall to avoid losses due to weight shortage in their stocked cotton bales.  Good quality 29mm cotton is sold to China presently at approximately 90 cents per lbs. According to cotton market sources approximately 3 crore 10 lakh bales of cotton has arrived till now in the Indian market.


The daily arrival is approximately 2000 bales per day. There is very little demand from the domestic Mills and therefore the markets of J-34 r/g are weak. The prices for good quality J-34 r/g in Punjab is Rs.4 050/ - per maund spot while in Haryana and Rajasthan good quality J-34 r/g was quoted at Rs.3935/- per maund spot .Bengal Desi s/g was quoted at Rs.3650/ - per maund spot.


Daily kappas arrivals have dropped to less than 20,000 bales per day. Good quality S-6 was priced at Rs.38,000/- Spot per candy while low micronaire was priced at Rs.37,000/-Spot per candy.


Severe hot weather conditions in Vidharbha areas were observed. Daily kappas arrivals have dropped to approximately 15,000 bales per day. Domestic mills are showing interest to buy cotton of good quality mech-1 with good micronaire.

The prices quoted for good quality mech-1 was Rs.37,800/-Spot per candy while low micronaire cotton was transacted at Rs.34,000/- spot per candy. Good quality V-797 r/g was sold at Rs.26,500/-Spot per candy.


There is not much arrivals in this region and factories are slowly coming to a stand still position. Good 29mm Bunny cotton is sold at Rs39,500/-Spot per candy and good Dch-32 cotton is sold at Rs.49,500/-Spot per candy.


Adilabad Low micronaire cotton was transacted at Rs.34,500/-Spot per candy while good 29mm cotton was sold at Rs.38,000/-Spot per candy . In Warangal good 30mm Bunny was sold at Rs.38000/-Spot per candy .CCI stock lots are the best quality available and 31mm Bunny is priced at Rs.39,200/-Spot per candy as per their pricelist.


Good quality stock lots of 30mm Bunny have been transacted at Rs.41,000/-Spot. Bunny of 29mm was sold at Rs.39,000/-Spot.Good quality Dch-32 was quoted at Rs.49,000/-Spot. Good Jayadhar cotton was being transacted at Rs.30,700/-Spot per candy.


The cotton is arriving in quality in the area surrounding Paramakudi. The cotton which is of 28mm is getting mixed with the Surabhi Cotton of 30mm and is sold at Rs.41,000/-Spot per candy to local mills while Dch-32 of good quality is quoted at Rs.51,500/-Spot per candy .


The New York futures is stable at around 85 cents per lbs. This weakness in the cotton market seems to be clearly a reflection of the financially weak situation in all markets world wide and it may take a little time for the cotton markets to improve.

Indian Cotton Federation

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