Cotton blooms on fresh buying by mills



Cotton prices improved on fresh buying by mills and exporters. However, higher arrivals limited the gain.

According to market sources, prices may move up in next week on good buying support.

Gujarat Sankar-6 cotton traded higher by Rs 200 to Rs 34,100-34,200 for a candy of 355 kg and B grade cotton price stood at Rs 34,000-34,100 in Gujarat.

V-797 cotton offered at Rs 26,800-27,000. About 50,000-55,000 bales cotton arrived in Gujarat and 1.80 lakh bales arrived in India.

A Rajkot-based cotton broker said: “Both exporters and mills were active in the markets. They bought around 45,000 bales from Gujarat.”

New 29 MM (3.8+ micronaire) cotton traded at Rs 33,400-33,700, 29 MM (3.7+ micronaire) cotton traded Rs 33,100-33,400 in in Maharashtra.

Low micronaire cotton quoted at Rs 32,900-33,100. According to ginners, after cotton prices fell below Rs 34,000 last week, exporters and mills started buying at lower levels. Price may gain further in next week if export demand continues in the market. Still the Gujarat-based farmers are not selling their cotton heavily and most of the ginning units are depending on outside cotton.

Source: Business Line