Buying by local mills buoys cotton

Higher demand from local mills pushed up cotton further on Monday. During the past two days, cotton has moved up by Rs 1,500 a candy of 356 kg.

According to brokers, farmers are holding the stock expecting even higher prices. A trader here said, “Weak monsoon has given rise to speculation. Price may touch Rs 40,000 a candy this week.”

The Sankar-6 variety was traded at Rs 37,000-37,500 a candy and the new V-797 variety at Rs 29,300-29,500 a candy.

Kapas or raw cotton has gained more than Rs 50 to Rs 1,000-1,040 for a maund of 20 kg in last two days. About 7,000-7,500 bales of 170 kg each arrived in Gujarat, while 17,000-18,000 bales arrived in the rest of the country.

In Maharashtra, A grade low micronaire (29 mm) quoted at Rs 38,000-38,500 a candy and high micronaire at Rs 37,000-37,500.

In Karnataka, Jaidhar 22 mm traded at Rs 32,000-33,000 a candy, 29 mm at Rs 37,000-38,000 a candy and 30 mm at Rs 38,500-39,500 a candy.