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Indian textile mills expect cotton prices to stabilize
Dec '13
Subdued buying activities were noted in market across India. Daily all India kappas arrivals crossed 1,80,000 bales and the monsoon in Andhra Pradesh is reflecting on prices of cotton. Mills are going hand to mouth and constantly observing the price trend as they expected the prices to stabilize on increase of kappas arrivals.


The cotton arrivals in this belt have progressed further and the daily average is around 15000bales. Prices look steady but Farmers are seeking better price than the present ruling quotes. Chilled weather were prevalent .

Transactions were moderate.J34 roller ginned was quoted at Rs.3950 to 4150 per maund spot. while Desi lots ruled at Rs.4150-4200 per maund spot. The Global cotton conference organized by NICA, held on 30.11.2013 at Gurgom was well participated and deliberated as per reports.


Gujarat S.6 rates were ruling bullish during the beginning of the fortnight, due to less arrivals to the tune of about 40,000 bales, out of all India crop arrivals of 1,40,000. Due to Exporters covering against end November shipment target dates, prices started moving up to Rs.40,200 to Rs.40,300 per candy spot for a few days in this fortnight and started to falling to about Rs.39,500 /cdy spot due to increased arrivals up to 60000 bales against all India arrivals of about 1,80,000 bales per day.

As per ginners view point, absolutely no parity noted, between cost of full pressed lint against ready bales market rates. Due to this reason, ginners slowed down their purchase of kappas. More over, Farmers are also not interested to bring more kappas to the market, anticipating further increase in rates. Most of the Mills, in South are not eager buyers, anticipating further fall in rates in December due to arrival pressure.

The daily kappas(Seed cotton) arrivals have touched approximately 60,000bales per day in Gujarat and a lot of kappas is arriving here in the main line and kadi from neighboring states like Maharashtra. This has lead to slight variation in quality here as cotton from some parts of Marathwada have seen drop in micronaire value. The prices for good quality S-6 was quoted at Rs.39,000/- Spot per candy.


The daily kappas (Seed cotton) arrivals here are approximately 30,000 bales. The drop in micronaire value of cotton in Southern parts of Marathwada in parts surrounding Beed is surprising to observe inspite of good monsoons this season. In Khadesh area cotton is excellent at the moment and the prices for good quality Bunny here is Rs.39,000/-Spot per candy. The arrivals of kappas are poor in Khadesh as Farmers are reluctant to bring kappas as they want better prices for kappas.

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