Subdued buying activities were noted in market across India. Daily all India kappas arrivals crossed 1,80,000 bales and the monsoon in Andhra Pradesh is reflecting on prices of cotton. Mills are going hand to mouth and constantly observing the price trend as they expected the prices to stabilize on increase of kappas arrivals.
NORTH ZONE [PUNJAB /HARYANA/RAJASTHAN]
The cotton arrivals in this belt have progressed further and the daily average is around 15000bales. Prices look steady but Farmers are seeking better price than the present ruling quotes. Chilled weather were prevalent .
Transactions were moderate.J34 roller ginned was quoted at Rs.3950 to 4150 per maund spot. while Desi lots ruled at Rs.4150-4200 per maund spot. The Global cotton conference organized by NICA, held on 30.11.2013 at Gurgom was well participated and deliberated as per reports.
GUJARAT:
Gujarat S.6 rates were ruling bullish during the beginning of the fortnight, due to less arrivals to the tune of about 40,000 bales, out of all India crop arrivals of 1,40,000. Due to Exporters covering against end November shipment target dates, prices started moving up to Rs.40,200 to Rs.40,300 per candy spot for a few days in this fortnight and started to falling to about Rs.39,500 /cdy spot due to increased arrivals up to 60000 bales against all India arrivals of about 1,80,000 bales per day.
As per ginners view point, absolutely no parity noted, between cost of full pressed lint against ready bales market rates. Due to this reason, ginners slowed down their purchase of kappas. More over, Farmers are also not interested to bring more kappas to the market, anticipating further increase in rates. Most of the Mills, in South are not eager buyers, anticipating further fall in rates in December due to arrival pressure.
The daily kappas(Seed cotton) arrivals have touched approximately 60,000bales per day in Gujarat and a lot of kappas is arriving here in the main line and kadi from neighboring states like Maharashtra. This has lead to slight variation in quality here as cotton from some parts of Marathwada have seen drop in micronaire value. The prices for good quality S-6 was quoted at Rs.39,000/- Spot per candy.
MAHARASHTRA:
The daily kappas (Seed cotton) arrivals here are approximately 30,000 bales. The drop in micronaire value of cotton in Southern parts of Marathwada in parts surrounding Beed is surprising to observe inspite of good monsoons this season. In Khadesh area cotton is excellent at the moment and the prices for good quality Bunny here is Rs.39,000/-Spot per candy. The arrivals of kappas are poor in Khadesh as Farmers are reluctant to bring kappas as they want better prices for kappas.
MADHYA PRADESH:
In M.P, arrivals of MECH.1, slowly picked up and average arrivals for the past fort night is about 10,000 bales per day . As for as DCH.32 is concerned, still arrivals are reported to be in slow pace And quality of DCH.32, is reported good in Staple ( 35mm in HVI), G.Tex 27 to 28 in ICC Mode.
But the only constraint noted in Micronaire which was tested up to 4.0, which is an unusual Phenomenon , and many local mills are reluctant to buy, due to high mic, whereas Exporters are least concerned about coarse micronaire.
Prices of DCH.32 is ruling today at Rs.59,500 to Rs.60,500/cdy spot. Exporters to Bangladesh are eager buyers and offering to buy at Rs.60,500/cdy spot, but sellers are not active, to sell due to speculation and less arrivals. MECH.1 30mm with 4.0 mic, are being traded at Rs.40,200 to Rs.40,400 /cdy spot and 29mm cotton quoted at Rs.39,000 to Rs.39,500 /cdy spot.
ANDHRA PARDESH
Fortunately the second cyclonic storm had weakened and turned into a depression there by reducing further damage to the standing crop. The rains have affected the quality of the cotton in Andhra Pradesh at the moment.
The prices of cotton in Adilabad range from Rs.33,000/-spot per candy for rain damaged cotton to Rs.38,500/- for good quality. Warangal side prices for bunny was Rs.39,000/-spot and Guntur prices quoted for bunny was Rs.39,500/- Spot per candy.
KARNATAKA :
The kappas arrivals are good in most of the centres here but the Ginners don't have parity at the present prices of Rs.39,500/- spot per candy for 30mm in Raichur and Rs.41,000/- Spot per candy for 31mm in Ranebennur and North Karnataka region.
Dch-32 has started arriving in quantity in centres like Kiruvatti and Kalaghatgi and kappas prices have shot up to Rs.6600/- per Quintal there by abruptly increasing the cost of Dch-32 to Rs.63500/- Spot per candy at present kappas prices.
Prices for Dch-32 was Rs.56,500/- till 15th Nov. We have to see how the mills will absorb this sudden increase in Dch-32 as the Dch-32 crop yet to arrive in the market is hardly 30,000 bales.
TAMILNADU :
Cotton lint prices are ruling steady and Mills are expecting further falls which may not happen as the supply situation is not even. Farmers are facing sucking pest attack due to abrupt weather conditions of draught/flood and uneven rains etc.
Picking is on in Darmapuri ,Tirupathur ,salem and Perambalur tracts. Coimbatore and nearby area like Pollachi belt, arrivals are on. Seed cotton prices were ruling around Rs.4200 per quintal for LS lots. SIMA has planned for Texfair 2013 Exhibition during 13-16th December
2013 with Farm to Fiber expo seminar on 14.12.13 at CODISSIA exhibition complex, Coimbatore. ICF will also take part in displaying its services and activities at its stall. Seminar with Exhibits will boost the visitors .Mills offtake has been slow and Power supply isruption continued .Skilled labour could not provide steady work schedule.
INTERNATIONAL
Global cotton lint prices continued to be range bound between 77 and 78 after bottoming to 74.79 cents on 21st November. At the end of the fortnight, NY prices settled at 78.14 cents.
