Cotton falls for 2nd consecutive day in Maharashtra amid sluggish buying

NEW DELHI, Sept 28 (Commoditiescontrol) : Cotton prices quoted lower in the mandis of Maharashtra for the second consecutive day on Wednesday amid sluggish buying from spinning mills, while daily arrivals remained steady.

The weather remained inclement in some of the cotton growing areas of the state. According to traders, multinational companies are not buying cotton in view of the arrival of the new crop. The arrival of cotton in the producing mandis will increase next month. Moreover, state's spinning mills are also adopting wait and see policy at this time. The moisture content in the new cotton is around 25 to 35 per cent, due to which the mills are facing disparity at current prices. Anyway, domestic demand is weak in yarn, as well as exports are also not competitive. However, due to negligible stock of old cotton with the mills of the state, its prices are expected to soften further.

After the disclosure of information that the millers in Nagpur line have been using chemicals to enhance the luster of cottonseed, its purchase has reduced.

A downtrend was seen in cotton and kapas prices in the domestic futures market today afternoon with April'23 futures contract of kapas on the NCDEX edged lower by 1.33 percent. The November month cotton contract on the MCX also fell by Rs 890 at Rs 30,000 per bale (1 bale -170 kg).

A total 1,000 bales of 170 kgs each of cotton arrived in the mandis of the state today, unchanged from a day ago.

Cotton prices in the state's mandis were at Rs 7,000 - Rs 9,000 while cottonseed was quoted at Rs 3,100 to Rs 3,600 per quintal.

In Sillod line, the price of Cotton 30/30 plus MM variety was Rs 75,000 to Rs 77,000 per candy.

In Nagpur and Yavatmal line, 30 mm variety of cotton was priced at Rs 74,000- 75,000, 29.5 mm at Rs 73,000- 74,000 and 29 mm variety of cotton at Rs 72,000 -73,000 per candy.

In Marathwada, Khandesh line, the price of 29 mm RD 75 variety of cotton was Rs 73,000 to Rs 76,000 per candy depending on the quality.

In Akola line mandis, the price of 29 mm variety of cotton was Rs 71,000 to Rs 73,000 and that of 28.5 plus cotton at Rs 70,000 to Rs 71,000 per candy, depending on the quality.