Kapas Future Swells On Strong Export Demand .

Mounting export demand of cotton along with delay arrivals in domestic market prompted the strong gains in cotton market in last one week. The cotton future prices increased by almost Rs35 per 20 kg in last one week.

As per latest statement by Bangladesh's Commerce Minister Muhammad Faruk Khan , India is likely to export 1.1 million bales of cotton to Bangladesh in the coming year. India is yet to export 1.35 lakh bales of cotton, out of the total of three lakh bales, to Bangladesh in the current year for which LC was opened. Commerce minister also expressed his optimism that the remaining 1.35 lakh bales of cotton would be exported to Bangladesh before the end of the current year.

India has approved the export of 3.9 mn bales (170 kg per bale) of cotton so far in the current season. The Textile Commissioner's office has received applications for exporting 5.5 million bales which is the upper limit set by India Government.

Prices were also encouraged by waning arrivals in major mandies as total daily arrivals of all the mandies were seen at 1 lakh bales so far in the current season. The total arrivals were declined by almost 12-15% compared to last year due to restricted supplies from farmers.

Consequently, traders have exhibited strong enthusiasm in the cotton market. The future prices of MCX contract have rallied almost 5% in last one week and were trading at Rs751 per 20 kgs in today's trading.

Source : indiainfoline.com