Steady tendencies was noticed on the Mumbai cotton market last week. In view of the rains at many producing centres the inflow has been affected early in the week, but later, with dry weather conditions, supplies have been on the rise.
The demand has been limited as mills were not at all in a hurry to build up inventories. Even results of first class mills for the last six-month period has been very disappointing and hence mills were having an acute paucity of funds. The sentiment in the market was quiet, as with the rising supplies and limited buying more and more stocks are pilling up.
Punjab, after an initial drop in the inflow, has reported higher arrivals of about 18,000 bales a day. The inflow in Gujarat, Madhya Pradesh and Maharashtra has been on the rise as the dry weather condition was again noticed. It was indicated that due to pests and diseases the Punjab crop has been affected to the extent of 10 lakh bales and the crop would hardly amount to 31 lakh bales.
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The Punjab deshi ruled at Rs 1,210-1,275 per Bengal maund. Saw gin Ganganagar ruled at Rs 1,735-1,775 and main line at Rs 1,975-1,900 per Bengal maund. With the increased inflow and reduced demand, prices ruled easy for Gujarat Shankar-4, which lost about Rs 300-400 per candy at Rs 19,000-20,000. M>P> H-4 was offered between Rs 19,000-19,500 per candy. According to reports from Madhya Pradesh hardly 50 per cent of the receipts have been sold out and hence the sentiment was quiet.
Cloth:Activity in the Mumbai cloth market has been below normal and to some extent disappointing for the brisk buying season at present. Traders were worried more about the failure of parties at upcountry centres.
However, presently some dealers from South India has been visiting the market to make purchases for next festival season and Id festival. In North India, the demand for woollen cloth has been on the rise in view of the cold season. Besides, demand for the marriage season sarees, suitings and shirtings have been moderate.
Reports from upcountry centres were mixed, with Delhi reporting good demand for woollen cloth and readymade garments. Demand for marriage season sarees, suitings and shirtings has been fairly satisfactory. On the other hand demand at Bhilwara for suitings and shirtings from various parts of the country has been poor. Hardly 20 to 25 per cent of the big parties were active while others lacked fresh demand. Traders there have been waiting for the demand to start in December. Except for few traders from the South upcountry buyers were absent. In view of the agitation by trade against the imposition of 5 per cent service charges to be collected from trade, the loading and unloading of goods have been interrupted and with the upcountry traders also going on protest bandh in early December trading could be affected.
The demand for woollen cloth, shawl, and blankets have been limited as was the demand for sarees, suitings and shirtings which were well below normal.
According to trade in cambric, new traders have entered the ring forcing the old traders to dispose of the stocks, cutting down prices to the extent of Rs 2-3 per metre.