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Cotton prices remain stable for fortnight ended Jan 31
Mar '14
Cotton arrivals were brisk all over Cotton Mandies during fortnight ending January 31. Quality has been not to the required level in terms of fineness and uniformity etc since there was mixing up of 1st and 2nd pickings. 
Cotton prices displayed a steady to firm trend as the Mills buying is supportive. On export front, demand initiatives are visible in Gujarat and Andhra Pradesh and Maharashtra. The daily average seed cotton arrivals were around 2 lakh bales. 
The stocking of cotton by stake holders including Farmers are being the discussion of the cotton market watchers. CCI reports the arrival of 151.41 lakh bales in the current season upto 26.1.2014 compared to 182.23 lakh bales same time last season. Trade estimates were reported to be of more by 20% more in arrivals. The price trend may continue with steady trend during next fortnight.
The daily average arrivals were around 15000 bls during the reporting fortnight. Cotton lint prices remained steady at last fortnight level with no major variations. Weather was hot during the day with snow falls during night. Farmers were slowly moving their stock to mandies like Sirsa, Hanumangarh, Abohar, Nibha etc.
As reported in our previous fortnight report, arrivals during beginning of the fortnight was less due to severe cold wave conditions prevailing, coupled with farmers reluctance to sell kappas, anticipating better rates. Prices were ruling firm due to the reasons cited, plus exporters demand also, fueled the price rise. S.6 prices were ruling throughout the fortnight at around Rs.42,800 to Rs.43,000, for 29 mm Staple length. 
Kappas rates were, ruling at around Rs.1,100 per maund spot. During end of January, arrivals picked up to 60,000 bales, out of all India arrivals of about 1,94,000 bales.
Varying opinions were expressed by trade as well as Mill circles, saying that in the near future cotton prices should remain subdued due to expected, increase in arrivals, but at the same time Market may be ruling firm due to good demand from local mills, and export bookings anticipated. Seed cotton arrivals are around 50000 bls a day. Mandies like Mansa, Manavadar, Kadi, Patan, Rajkot etc. received seed cotton. Ruling prices range Rs.42000 to Rs.43000 per candy spot. 
During the reporting fortnight Export enquiries were reported and domestic demand also persisted. Weather was hot with lower temperature during night time.

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