By admin       2017-10-12

Though raw cotton has started arriving in Punjab, Madhya Pradesh, Gujarat, Maharashtra and Andhra Pradesh, full-fledged arrivals are expected in the second week of November, trade sources said. This is putting additional pressure amidst increased buying from the mills. Prices of old cotton crop are hovering at around Rs.5,500 per quintal for raw cotton, while fresh cotton, due to its higher moisture content, quoted lower in the range of Rs.4,500-5,000 per quintal. “The price rise is a temporary phenomenon. We may see some downward movement in prices after November. But till then, some more upside can be seen,” said Biren Vakil, an analyst with Ahmedabad-based Paradigm Commodities. Trade sources said cotton prices will maintain a bullish trend till full-fledged arrivals begin and daily arrivals hit about 1.5 lakh bales. “The mills are buying about 85,000 bales on a daily basis and the arrivals are not matching it. Prices will remain firm till the arrivals increase because the supply pipeline is almost empty,” said Arun Dalal, a trader in Ahmedabad.

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