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Overall cotton prices slide

May '07
Overall cotton prices registered a considerable decline, adversely affected by reduced demand from South Indian factories.

Reportedly, cotton dealers are eager to sell their commodities but the textile mills, especially in Southern regions, already have more than enough stock of cotton yarn.

Gujarat Shankar-4 was quoted at between Rs18200-18600 per candy, while the MPY-1 variety price dropped to around Rs17000-17400 range. H-4/LR category fell to Rs17500-18000 and super quality price plunged to Rs18000-18400. Kalyan cotton was traded at around Rs14000-14700 per candy.

Meanwhile, quintal of Narma Rajasthan was priced around Rs1800-1850, Punjab line was quoted at about Rs1880-1930 and Haryana category dipped to Rs1850-1890.

Infact, global cotton spot and futures prices were also seen sliding. While, New York May cotton was traded around 46 cents, that for July, October, and December futures stood at 48.4, 51.5 and 50.03 cents, respectively.

International Cotton Advisory Committee has predicted that the global output during 2007-2008 period will shrink.

China's cotton production is expected to decline to 65 lakh tons, next year.

However, production in India will grow to 47 lakh tons and that of Pakistan is also likely to rise five percent to reach 22 lakh tons.

India's cotton consumption will be around 26.7 million tons.

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