Cotton prices remained unchanged in Gujarat due to normal demand and selling. According to traders, cotton prices will remain on present levels as rains brighten higher yield expectation in cotton.
Gujarat new A grade S-6 cotton traded at Rs 36,300-36,800 a candy and B grade cotton at Rs 36,200-36,300. Prices of New V 797 offered at Rs 28,500-29,000.
About 3,000-3,200 bales arrived in Gujarat and 5,800-6,000 bales arrived in the country.
In Maharashtra, A grade cotton low micronaire quoted at Rs 36,300-36,500 and A grade high micronaire cotton 29+ mm was quoted at 36,500-36,800 a candy.
According to cotton brokers, rain reported in many parts of Gujarat and some parts of North India, Madhya Pradesh and Maharashtra.
Standing crop may be damaged in some parts of Vidharbha, Madhya Pradesh and lower Rajasthan due to heavy rains, although rains have improved the overall crop outlook.
Unsold stocks with traders and ginners were estimated at 1.5 million bales. Cotton prices remained steady in South India on Monday. Demand was normal but there were few sellers in market.
In Adilabad, new cotton traded at Rs 38,000-38,500 a candy. In Guntur, 31 mm cotton was offered at Rs 39,000-39,800. In Warangal, 30 mm cotton was quoted at Rs 38,500- 39,500 a candy.
Dow Jones reports: On ICE US, December-delivery cotton was traded 0.4 per cent lower at 75.97 cents a lb.
“Even if poor US jobs data last week increased odds that QE3 is on the way, it’s not enough to lift cotton prices, or spark any rally of consequence” said Knight Futures’ senior cotton analyst Sharon Johnson.
Global fundamentals remained weak with lacklustre demand countering even a fall in global production.
“A more likely scenario is the big picture which has had a profound impact the past 3-4 years, is simply continuing to exert itself on cotton values,” Johnson said.