India : Cotton Prices Expected To Rule Firm Till Oct

Cotton prices are likely to rule firm till October on good domestic demand, lower old stocks and fresh export enquiries, traders said.Forward prices of major cotton varieties (Gujarat, Maharashtra and Madhya Pradesh) were quoting higher by about Rs 2,000/2,500 per candy over ready prices, brokers said. Among major varieties, Shankar-6 on Wednesday quoted at Rs 23,000 per candy for October deliveries.Due to "Shradh Paksha", trading activity was very low. Generally, the trend was bullish for
near deliveries and was likely to remain so for October to early November deliveries, he said.

"Southern mills are expected to enter the market with a bang, when "Shradh Paksha" ends on September 25, a leading trader said.

In the northern States, new crop arrivals had started. Forward prices were being quoted now. The difference between old crop and new crop were wide. The discount at which new crop was being sold would attract many buyers. Quality of new crop was reported to be satisfactory in Punjab, Haryana and Rajasthan, traders said."As cotton stocks run out, markets are daily becoming firmer. Presently, stocks are expected to be around 1/1.5 lakh bales," a leading broker said.

"There are some inquiries for new crop cotton for export. Foreign buyers (especially from Bangladesh) are showing interest in J-34 S/G and Shankar for early shipments," a broker said.