Cotton may wilt some more on slack buying

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RAJKOT, DEC. 6:

Cotton prices declined as demand from mills and exporters petered out.

Kapas was also traded lower due to poor ginning activities.

According to traders, prices of cotton may decline further next week.

Gujarat Sankar-6 cotton was down by Rs 200 at Rs 38,200-39,000 for a candy of 356 kg. B-grade cotton was quoted at Rs 38,000-38,500.

Kapas or raw cotton decreased by Rs 5-7 to Rs 860-970 for a maund of 20 kg in Rajkot.

Gin delivery kapas was quoted at Rs 960-975 a maund.

About 60,000 bales (of 170 kg each) cotton arrived in Gujarat and 1.71 lakh bales arrived across the country.

Traders said that buyers are expecting price to be lower as cotton production this year is likely to be higher.

On the demand front, domestic mills’ buying is limited.

Compared with last year, cotton arrival is slow as farmers are holding back their produce expectingkapas prices to rise.

Experts said farmers are demanding Rs 1,000/maund, and they are ready to wait for prices to reach that level.

Dow Jones reports: Cotton futures climbed to a six-week high on Friday morning as exchange-certified stocks dropped amid demand for the fibre. ICE-certified stocks dropped 60 per cent this week to a 6-1/2-week low of 94,361 bales. “Buyers wanted that cotton and they’re taking it off the board because they have a home to send it to,” said Sharon Johnson, senior cotton specialist at KCG Futures in Atlanta. Cotton for March delivery on the ICE Futures US exchange was recently 1.2 per cnet higher at 79.80 cents a pound, the highest intraday level since Oct. 25.

Source: The Hindu

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