INDIA: Cotton steady on export inquiries.

RAJKOT: Cotton prices ruled steady on higher levels as domestic demand was strong and export inquires increased.

The price in Gujarat for Shankar-6 was quoted at Rs 29,700-30,000 for a candy of 356 kg. The price in Maharashtra for the same variety was stable at Rs 29,000-29,500.

Arrivals were about 1,700-2,000 bales of 170 kg in Gujarat. Raw cotton price was Rs 730-735 for 20 kg.

Cotton traders said that an increase of Rs 500 a bale in the price was on cards as domestic demand was strong. Moreover, export enquiries were put pressure on the market.

The ban on cotton exports has not affected the prices, as there was constant demand from domestic spinning mills.

Over 100 new textile firms have come up in Andhra Pradesh, resulting in increased demand for cotton.

The Gujarat government, on the other hand, has levied a cess on cotton that is sold out of State, owing to which cotton prices have surged by around 2 per cent. Tamil Nadu, which accounts for nearly 45 per cent of the overall spinning capacity in the country, is the largest purchaser of Gujarat cotton.

NET LONG POSITIONS UP

Bloomberg reports: Cotton for December delivery rose 0.78 cent, or 1 per cent, to 79.54 cents a pound on ICE Futures US in New York. Earlier, the price touched 79.57 cents, the highest level for a most–active contract since June 23.

Money managers increased their net long position in ICE cotton futures and options to 33,155 lots in the week ended July 27, up from 26,993 lots the week before.

Source : bharattextile.com