Cotton price was moved up by Rs 300-500 per candy on strong international market supported by increased MSP and better American weekly data.
Centre government has increased the MSP of Medium Staple Cotton from Rs 2,800 to Rs 3,600 per quintal and long staple cotton from 3,300 per quintal to Rs 3,900 per quintal.
Rajkot based cotton broker said, “We are expecting some good demand from domestic as well as from international side as global sentiments are changing and become positive for the market. Moreover central government has increased MSP of cotton which support the price to go up. Market will remain strong for next few days.”
Gujarat Sankar-6 cotton was increased Rs 300-500 to Rs 32,500-33,000 per candy of 356 kg. B-grade cotton stood at Rs 31,700-32,200 a candy. Prices of New V 797 offered at Rs 26,500-27,000 a candy. About 10,000 bales cotton arrived in Gujarat and 25,000 bales arrived in India.
Kapas also was traded higher by Rs 10-15 to Rs 775-795 per 20 kg in local and Kadi dilevery kapas was stood at Rs 800-810 per 20 kg.
On National Commodity and Derivatives Exchange (NCDEX) kapas April 2013 contract rose Rs 10 to Rs 982.55 per 20 kg with an open interest of 1,782 lots.
The spot July cotton futures climbed the 3.00 cent daily limit to close at 78.09 cents per lb. The session low was 74.66 cents. The key December cotton contract on the ICE Futures U.S. exchange rose 0.19 cent to finish at 70.60 cents per lb, dealing from 70.01 to 73.08 cents.