After an initial trend prices ruled easy on the Mumbai cotton market last week. On account of the fall in the supplies early in the week the trend was better, particularly for Punjab varieties, but with the increase inflow, prices ruled quiet.
At the same time, the decline was more pronounced in case of Gujarat Shankar-4 and Madhya Pradesh cotton. Early in the week many producing areas received rainfall or cloudy weather conditions which adversely affected the inflow.
It was only because of the higher cotton yarn export that mills are lifting good quantity of cotton to clear the export commitments before the end of the year. At the same time, recent untimely rainfall would have an adverse impact on quantity as well as quality. In this respect the crop estimate has been further lowered to 165 lakh bales, against an estimated crop of 176 lakh bales in the last season.
On the other hand, demand for cotton cloth on both, domestic and overseas markets, has been below normal. and there was no worthwhile advantage from the decline in rates of the rupee. Punjab Bengal deshi was traded at !,225-1,275 and saw gin at Rs 1,725-1,875 per Bengal maund. Gujarat Shankar-4 fluctuated between Rs 19,000-Rs 20,200 and Rs 18,700-19,700 per candy. At the same time, in view of dry weather condition helping increased inflow, the prices of Madhya Pradesh cotton have been adversely affected.
Cloth: Trading commenced on a tame note on the Mulji Jetha cloth market after the recent strike against the service tax last week. The demand has picked up but only to a small extent.
In view of the marriage season as well as Christmas, traders are anticipating good seasonal demand but buying is limited and only few upcountry traders were showing interest in fresh purchases. At the same time, upcountry powerloom centres are already active producing inferior cheaper cloth meant for banners during the election. Besides, orange and yellow colour cloth has been in production anticipating good demand during the next month or so. During election the demand for cheaper long cloth of grey varieties are in good demand and at last moment if these varieties are not available parties go in for costly poplin.
Reports from upcountry centres indicate slow demand for marriage season sarees, suitings and shirtings. . Traders are awaiting good Id demand in coming days. Some of the rates quoted on the Bhiwandi grey market for Cambric were: 40/60, 62/62 Rs 11.30; to Rs 11.70; 40/60, 68/68 Rs 14 and 60/60, 80/72 Rs 15.50 per metre.
Grey mulls prices were: 60/80, 56/46 Rs 7.20; 60/60, 56/46 Rs 8.60; 80/100, 52/40 Rs 7.90 and 100/120, 80/72 Rs 13.25 per metre. Prices for bleached long cloth ruled between Rs 11.61 to Rs 13.51 per metre. Poplins bleached fetched Rs 13.85 to Rs 23.45 per metre. In view of the slack demand prices were steady and buyers were able to get ready stocks. However, prices had moved up in woollen varieties due to good buying.The demand was good for blankets, shawls, sweaters.
