India: Cotton wilts on weak export, mills’ demand

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RAJKOT, APRIL 22:

Cotton prices traded lower on the back of weak export and domestic demand.

According to traders, the tend in the market is lukewarm as there is no big buying.

Gujarat Sankar-6 cotton decreased by Rs 200 to Rs 37,200-37,500 for a candy of 356 kg. The Kalyan variety cotton traded at Rs 29,000-29,500 for a candy. About 20,000-22,000 bales of cotton arrived in Gujarat and 65,000-68,000 bales across the country.

Cotton ready delivery quoted at Rs 3,870-3,965 a quintal in Punjab, Rs 3,810-3,855 in Haryana and Rs 3,800-3,830 in Rajasthan.

Kapas or raw cotton declined by Rs 5-7 to Rs 900-960 for a maund of 20 kg and Kadi delivery kapas traded at Rs 950-980 a maund.

Traders said that spinners have slowed down purchases due to weak offtake in yarn. Some exporters resumed buying at lower levels. However, fresh export demand was very limited.

A Rajkot-based cotton broker said: “Due to weak international market, the export demand is currently dull. Moreover, spinning mills buying is limited putting pressure on the prices.”

Most-active July cotton on ICE Futures U.S. closed down 0.12 cent at 85.36 cents a lb. It marked the contract’s third weekly loss in a row. Prices fell even more sharply on Thursday after China’s state reserve announced it would sell some of its massive reserves beginning on Friday.

Source: Business Line

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