Cotton weakens in Andhra & Telangana amid reduced buying

NEW DELHI, Sept 24 (Commoditiescontrol) : Cotton prices softened in the mandis of Andhra Pradesh and Telangana on Saturday amid reduced buying from spinning mills, while daily arrivals were reported lower.

According to traders, as local and export demand for yarn continued to remain weak, the spinning mills of the state are currently procuring cotton only as per requirement, resulting in a decline in the price. Moreover, the arrival of the new cotton crop in the producer mandis of the state will increase in October. Considering the weather so far, the cotton crop in these states is in good condition. Hence, the demand from spinning mills is expected to remain weak for now. Anyway, due to less buying in yarn, the mills of these states are not getting parity at current prices of cotton. However, due to the limited stock remaining with the mills, there is no chance of a major one-sided fall in the cotton prices in the state mandis.

The daily arrival of cotton in the mandis of Andhra Pradesh and Telangana was 1,600 bales (1 bale -170 kg) today, down from 2,400 bales a day before. Of the total arrivals, 100 bales arrived in Telangana and 1,500 bales in Andhra Pradesh.

Cotton prices were at Rs 7,200- 9,800 per quintal in Telangana mandis and at Rs 7,500 to 9,500 per quintal in Andhra Pradesh mandis.

Cottonseed prices ranged from Rs 2,800 to Rs 3,600 per quintal in mandis of Telangana and Rs 2,800 to Rs 3,500 per quintal in mandis of Andhra Pradesh.

In Guntur mandi of Andhra Pradesh, 29/29.5plus mm RD 71/73 variety of cotton traded at Rs 65,000 to 70,000 per candy (candy-356 kg), while 30 mm RD 71/73 variety new cotton traded at Rs 70,000-74,000 per candy, depending on the quality.

In Adoni Mandi of the state, 29 plus mm RD 72/75 variety of cotton was traded at the rate of Rs 72,000 - 75,000 per candy (candy-356 kg).

In Warangal Mandi of Telangana, 29 plus mm RD 72/75 cotton traded at Rs 72,000 - 78,000 per candy.

In Bhainsa Mandi, the price of 29/29 plus MM variety of RD 72/75 cotton was quoted at Rs 77,000 to Rs 81,000 per candy.