Raw cotton spot prices are expected to rule lower in the next few days on increased inflows of new crop, amid limited buying from mills and exporters, in view of low yarn off-take.
Daily inflows of new crop have increased to 85,000-90,000 bales daily (each of 170 kg) including around 35,000 bales in northern states, 25,000 bales in Gujarat, 10,000-12,000 bales in Maharashtra, and 15,000 bales in Madhya Pradesh. Traders expect the cotton crop to reach 325 lakh bales during the new season.
?Fresh inflows of new crop in the northern and western region are increasing day-by-day. It is expected that daily inflows would increase to 1.25 lakh bales daily by Dassera (October- 23). Quality of cotton is good. Overall buying from mills and exporters are reported to be low,? a broker said.
Spot prices of major varieties such as J-34 and S-6 have declined by about Rs 1,000 per candy in last few days. Spot prices of Shankar-6 are currently ruling around Rs 19,000 per candy, while J-34 prices have also gone down by around Rs 125 to trade around Rs 1,800 per maund. ?There are hardly any forward sales of Gujarat Shankar-6 and Mech variety of MP or Maharashtra cotton for month-end delivery. Southern mills are not buying in full swing due to low yarn offtake. Mills are currently buying Gujarat S-6 ready delivery, exporters are buying S-6 and J-34 for November shipments, but not in bulk quantity,? an official of export house said.