All India cotton arrivals have dropped to approximately 85,000 bales per day. The total cotton pressed for the fortnight ending 30th April is approximately 3 crore 35 lakh bales as per trade sources. The unsold cotton stock with ginners and CCI which has 4 lakh bales, together is approximately 56 lakh bales as per trade sources.
Approximately 95 lakh bales have been registered for exports of which 92 lakh bales have already been shipped as per trade sources.
As per newspaper reports there may be an increase in cotton sowings by 5% in the upcoming season. Monsoon is predicted to be average to below normal as per meteorological reports. In many tracts the pre-monsoon showers were reported and continued.
Yarn exports during 2013-14 were reported to be up including made ups and fabrics. Thus, value addition has helped in over all employment and revenue.
Since the cotton crop is more drought resistant and deep rooted, than any other cash crops, the area of sowing is predicted to be sustainable. Cotton prices also ruled steady to firm tendency all over. As per CCI, the arrivals as on 14.4.2014 were 295 lakh bales against 308 lakh bales same time last season.
Punjab /Haryana/Rajasthan:
The seed cotton arrivals further dwindled to less than 3000 bales a day on an average during the fortnight. Cotton lint prices were ruling on a firm tendency at the rate of Rs.4650 to Rs.4825 per maund spot for roller ginned J.34 lots. Monsoon is predicted to be below normal and there is good demand for BT cotton seeds from Farmers.
Gujarat:
During the end of the fortnight, no big transactions reported both in domestic and in export sales. Arrivals were around 30,000 bales, against total crop arrival of about 85,000 bales per day. Micronaire quality also deteriorated to a greater extent. Only stocks being held by ginners are of good quality, which are expected to be released during monsoon. Prices of 29mm and 3.8mic S.6, were quoted at around Rs.42,500 during the beginning of the fortnight and went up to Rs.44,000/cdy spot, during end of the fortnight.
As per trade sources 106 lakh bales have been pressed in Gujarat till now and approximately 21 lakh bales are lying as stock in the form of kappas or bales with ginners and traders. The price for good S-6 cotton was Rs.43,500/-Spot per candy and good V-797 r/g was quoted at Rs.27,500/-Spot per candy.
Maharashtra:
As per trade sources approximately 75 lakh bales have been pressed in Maharashtra till now and approximately 10 lakh bales were lying as stock in the form of kappas or bales with ginners and traders. The price quoted for good quality 29mm Mech-1of Wani was Rs.44,000/-spot per candy.
Madhya Pradesh:
In M.P, daily arrivals were around 5,000 bales only and price of 29mm and 3.7mic Mech.1 was quoted at around Rs.42,000 per candy spot during beginning of the fortnight, which later went up to Rs.43,500 spot per candy. Very limited stocks of 34mm quality, were quoted at Rs.59,000/cdy spot, and 35mm was quoted at Rs.63,000/cdy spot.
Andhra Pradesh:
As per trade sources approximately 61 lakh bales have been pressed in Andhra Pradesh and approximately 10 lakh bales were lying as stock in the form of kappas or bales with ginners and traders. The price quoted for good quality Guntur Mcu-5 of 31mm was Rs.44,500/-spot per candy.
Karnataka:
As per trade sources approximately 19 lakh bales have been pressed in Karnataka till now and approximately 3 lakh bales were lying as stock with farmers, ginners and traders in the form of kappas or cotton. Good quality Bunny of 29mm was sold at Rs.41,000/- Spot per candy in Raichur while good 30mm cotton in North Karnataka was sold at Rs.44,650/-Spot per candy. Quality cotton is becoming scarce as the season is coming to an end.
Tamilnadu:
The seed cotton arrivals have been continuing and crossed 2.5 lakh bales so far as per field reports. Pre monsoon showers have been experienced in many tracts and were a relief to standing plants and to complete sowing as per farmers group. Group farming / village level one variety is being experimented by farmers group to help in marketing of seed cotton.
Few have gone to the extent of selling the cotton lint after getting the produce ginned to realize a better price. Mills demand is prevalent and the prices were on a steady trend with no supply bottlenecks. Inflow of cotton lint from up country states was also steady. Mills were still working on schedule, though power cut was prevalent. Yarn and valued added textile exports have improved with Chinese demand in particular.
International:
World Cotton prices displayed a marginal increase in price quotes with New York prices rule around 92.38 cents per lb for May 14 and Cotlook A Index at 94.20 cents per lb on 28.4.2014. The sales from China’s cotton reserve were on the rising side and domestic prices were also attractive. Chinese mills consumption showed a diminishing trend since 2010/11, when the cotton reserves policy as per ICAC reports began.
