Slack global, domestic demand crush cotton

Our Correspondent Updated - June 08, 2012 at 08:37 PM.

BL09_COTTON

A weak global market and lower domestic demand dragged cotton prices in the western parts on Friday.

A Rajkot-based cotton broker said that domestic and international demand is poor and it was putting pressure on cotton price. During June, cotton may not gain as demand is weak. “We are expecting demand to emerge only in July. Moreover, ample stocks of unsold cotton will restrict any uptrend in cotton,” he said.

Gujarat Sankar-6 cotton was traded lower by Rs 200-300 at Rs 32,500-32,600 for a candy of 356 kg. Kalyan cotton was traded at Rs 24,000-24,500 a candy. Price of raw cotton or

kapas was down by Rs 5 to Rs 780-795 for a
maund of 20 kg. About 12,000-13,000 bales arrived in Gujarat and 35,000 bales arrived across the country.

In Maharashtra A grade cotton (low micronaire) quoted at Rs 31,500-32,000 a candy and A grade (high micronaire cotton 29+ MM) quoted at 32,300-32,800.

On the National Commodity and Derivatives Exchange, kapas April 2013 contracts declined by Rs 16 to Rs 954 a maund with an open interest of 1633 lots.

In North India, limited selling pushed up cotton prices. Demand was poor, though. Arrivals were reported at 4,000 bales. A leading multinational trading firm sold around 25,000 bales in North India this week.

J-34 RG quoted in range of Rs 3,490-3,560 a quintal in Punjab; Rs 3,460-3,470 in Haryana and Rs 3,460-3,470 in Rajasthan.

Published on June 8, 2012 15:07