Trade Resources Economy Cotton Market Ruled a Steady Trend During Fortnight Ending April 15

Cotton Market Ruled a Steady Trend During Fortnight Ending April 15

Out of 3 crore 75 lakhs bales of cotton crop predicted, approximately 3 crore 10 lakh bales have been pressed till 15th April as per trade sources and the daily kappas arrivals is quickly dropping to 95,000 bales per day.

As per trade sources till 15th April, approximately 95 lakh bales have been registered for exports of which approximately 80 lakh bales have been shipped. Cotton market ruled a steady trend during fortnight ending April 15. This may not sustain once the cotton arrival slows down.

Punjab /Haryana/Rajasthan:
The fortnight recorded a low volume on an average daily arrivals to less than 5000 bales. Cotton lint prices rallied steady tone between Rs.4500 to Rs.4625 per maund spot for roller ginned lots. Weather conditions are changing towards start of monsoon and farmers are engaging in land preparations. Farmers are in full hope to avail the best prices though, the demand for cotton lint is on an average trend.

In the fortnight, prices of S.6 were ruling steady. No bulk transactions were reported either in export, or in domestic sales. Arrivals dropped to around 35,000 to 40,000 bales per day out of all Indian average arrival of about 95,000 to 100,000 bales. Prices of 29 mm and 3.8 Mic S.6, has been ruling steady at around Rs.42,500 /cdy spot.

As informed in our previous reports, still considerable volume of cotton is being held by Ginners, expecting market to improve. But, local traders said that cotton prices may come down during this week as international factors are not supportive. Demand from China is likely to decline and future market is also seen negative. Approximately 94 lakh bales have arrived in Gujarat till now. The price for Good quality S-6 is Rs.43,000/-spot per candy.V-797 r/g is quoted at Rs.24,000/-spot per candy.

Lower micronaire cotton of 25 mm is sold at Rs.37,000/-spot. Average quality 29 mm with low micronaire of 3 is quoted at Rs.40,200/-spot per candy. The quality of cotton from Vidharbha region too has dropped to 29 mm with micronaire of 3.6 and is sold at Rs.42,000/-spot per candy. Weather is hot with scanty rains in selected spots. Enquiries are normal. Daily Arrivals are around 30,000 bales.

Madhya Pradesh:
In Madhya Pradesh, prices of both MECH.1, 29 mm and Mic 3.8 quality and DCH.32, 34mm quality, are ruling steady without any change and volumes were low. The ruling prices for MECH.1 is Rs.42,000/cdy spot and for DCH.32 is Rs.58,500 to Rs.59,000 /cdy spot. Kappas arrivals reduced in volume amid steady demand.

Andhra Pradesh:
Good quality 29 mm cotton of Karimnagar is quoted at Rs.43,500/-spot per candy. Good 29 mm is quoted at Rs.43,500/-spot per candy. Despite hot weather, cotton arrivals were not bad. Around 20,000-25,000 bales arrived in markets on a daily basis.

Good quality 29mm Bunny in North Karnataka area is quoted at Rs.43,500/-Spot per candy. While for 30mm, ginners of North Karnataka are selling at Rs.44,250/-Spot per candy and Jayadhar is sold at Rs.32,500/-Spot per candy. Good quality Dch-32 of 35 mm is sold at Rs.63,000/-Spot per candy.

Tamil Nadu:
Arrivals continued and lint prices are steady. Mills are experiencing quality related problems and unable to spin with proper input mix. Quality of yarn could create problems in marketing yarn and finished goods.

Already 2 lakh plus bales have arrived so far during current season. Water shortage is being experienced in many tracts as summer sowing is on. CCI has planned FLD’s in few areas to encourage cotton acreage in Tamil Nadu. Yarn movement is fluctuating and power cut problems are experienced by mills.

Global cotton prices seem to be on a downtrend with 90 cents per lb on April 15 and Cotlook A index at 93.85 cents per lb. This is 3 to 5 cents lower than March 31. As reported in earlier news reports, China’s cotton storing and import policy could be a yardstick to identify the cotton price tags.

U.S cotton planting report indicates a seven percent increase in acreage over 2013. ICAC also predicts a higher acreage and a cotton production of 3.2 million tons with an average yield of 930 kgs per hectare.

Pakistan has imposed a 5% duty on cotton yarn imports to support domestic Industries.

ITMF has approved updates to the guidelines for standardized instrument testing of cotton as per reports. Cotton exports from Uganda is picking up. Egypt’s cotton exports fell by 42 % in 2013-14.

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Cotton Market Rules Steady in Fortnight Ending April 15