Cotton moving up and may continue on strong mills’ demand with flow of export inquiries

Cotton prices gaining backed by short supply and strong demand from spinning mills. In addition to this, the flow of export enquiries has also supported the market. According to traders, domestic mills are buying on a large scale and export demand was also prominent.

A Rajkot-based cotton broker said that due to Makar Sankranti in Gujarat and Pongal in South India, arrivals have decreased in the last few days.

In Gujarat, cotton arrivals, which were about 55,000 bales last week, have slipped to 45,000 bales, while across the country, they have dropped from 1.85 lakh bales to 1.35 lakh bales.

Gujarat Sankar-6 cotton increased by Rs 200-300 to Rs 42,200-42,500 for candy of 356 kg. Kapas, or raw cotton, traded higher by Rs 10-15 at Rs 1,050-1,070 for a maund of 20 kg. Gin delivery kapas was stood at Rs 1,065-1,085/maund.

On the National Commodity and Derivatives Exchange, kapas April contracts increased by Rs 8.50 to Rs 1,028/maund, with an open interest of 14,713 lots.

Cotton prices may continue to go up after Makar Sankranti, as fresh export demand is likely to emerge in the near future.

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