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Indian cotton & yarn markets sluggish in Nov
Nov '13
Post Diwali, markets were sluggish- especially the yarn markets. A strike by weaving houses in Maharashtra has reduced the buying activity in yarn market. The all India kappas arrivals is averaging 1,70,000 bales per day.

Easy conditions prevailed in Cotton markets. International market is also sluggish. Cotton Advisory Board (CAB) met on 1.11.2013 to estimate the Cotton crop for 2013-14 season. Depreciating Indian Rupee, (1$=INR 63.60) is believed to be a motivation for exporters of Cotton and Yarn.

CAB estimated the total cotton crop to be around 375 lakh bales. However CAB is yet to release the state wise area and Cotton production for 2013-14.


Ginners here are facing disparity are hesitant to sell. J-34 r/g in Punjab is priced at Rs.4430/- per maund spot while in Haryana J-34 r/g is priced at Rs.4330/ - spot per maund. Bengal Desi s/g is priced at Rs.4350/- per maund spot.


The CCI withdrawal from commercial kappas purchase at above MSP prices has impacted the prices of S-6 and prices have dropped to Rs.39,200/- Spot per candy. The daily kappas arrivals in Gujarat have increased to 50,000 bales. The price of V-797 was Rs.29,200/-spot per candy.


The daily kappas arrivals have increased to above 30,000 bales and price for good quality bunny was Rs.39,000/- Spot per candy. Quality is very good at the moment in Khandesh region and reports of drop in micronaire in some small pockets of Marathwada in areas neighbouring Georai are reported. Kappas arrivals are yet to pickup in Vidharba area. There are crop damages in this belt and Farmers are bit upset over the delay in crop compensation.


In this state though the sowing was less by 18-20%, the yield is expected to compensate this drop and cotton production will sustain around 18 lakh bales or little more. Cotton prices are in softening tendency with the average arrivals of 12000 bales daily. Cotton crop is healthy. Prices ranged Rs.39500 plus spot per candy. ELS variety DCH was quoted around Rs 58500 per candy spot.


The daily kappas arrivals is approximately 25,000 bales. As per newspaper reports an announcement by agriculture department in Andhra Pradesh, out of 2,25,000 hectares in Warangal wherein Cotton was sown approximately 51% of the area is destroyed due to excess rain. In the remaining area there are reports of various types of pest attacks due to drop in night temperatures to between 15 to 20 degree centigrade.

Rain damaged kappas is arriving in Guntur and Adilabad region and hopefully will be exhausted by the month end after which good quality kappas will start arriving. Prices for bunny in Adilabad region is Rs.39,000/- Spot per candy while in Warangal it is priced at Rs.39,000/-Spot per candy. Guntur area bunny is priced at Rs.40,000/- Spot per candy.

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