Cotton prices display softening trend
The cotton lint prices, in general displayed a softening trend by the latter half of this fortnight. However the prices are still higher than last year this time for all varieties other than ELS lots.
The south west monsoon revival has given a sigh of relief to farmers and they are engaged in rejuvenating the unhealthy plants due to moisture stress. In some tracts flooding has been reported.
The current scenario is that it may take a couple of weeks to reassess the cotton crop situation to make a conservative estimate for 2008-09.
Mills are also going slow in their cotton purchases, due to improving prospects of the new crop. The price trend will be known only after the correct assessment of cotton crop.
But all indications point out that the local prices will be much more sober as the new crop arrivals begin. From the Mills point of view, the demand will be slow as increasing costs of all inputs will lead to difficult working conditions.
From the farmers point of view also, they are still facing higher costs of cultivation driven by inflation, fertilizer shortages and uncertain weather conditions.
There are reports that in some tracts, the farmers have gone for short duration seeds other than traditional varieties of cotton due to the delayed spread of Monsoon.
The effects of climate change needs to be addressed by providing timely and effective guidance to the Farming Community.
The State Planning commission team which had planned to meet the stake holders at Coimbatore, have postponed their visit. Tradeable stocks in all markets have been reduced almost
to small quantities.
During the current fortnight, the cotton lint prices maintained a steady to easy tendency. Bengal deshi variety were ruling at Rs.2620 /-to Rs.2700 /- per maund spot. J.34 Saw ginned was ruling at Rs.2750/- to Rs.2810/- per maund spot.
Conducive weather reports indicate crop prospects to be positive from this belt. New crop deliveries are expected to be on time and in Sept. Prices quoted for J34 new crop are from 2550/- to 2650/- per md. Spot
During the current fortnight, the cotton lint prices were ruling easy as the rain advanced and crop prospects were improved.
There are reports that additional acreage has been added in some districts. Price line for 2007/08 stocks still holds at a higher side compared to last season, same time.
Shankar 6 was being quoted at Rs.27200/- to Rs.28000/- per candy spot and prices for new crop 2008-2009 were lower at Rs.24500/- per candy spot. V797 was ruling from Rs 20500/- to 21000/- per candy spot.
During the current fortnight, the cotton lint prices were steady but still higher than last season. MECH- 1/H4 was ruling at Rs.26300/- to Rs.27000/- per candy spot..
Rains are reported in many tracts. New crop Mech-1/LRA arrivals have begun in a small way from Baramati/Phalton areas and some pressing has started in Sendhwa and a few more stations in M.P.