Friday, December 5, 2008

Cotton Prices Were Quoted Swell On Millers Buying - Dec 05, 2008

Cotton prices were quoted steady across major market in India from last three trading session. Cotton price in Haryana and Punjab was quoted marginally higher by Rs.20-25 while it was quoted lower by Rs.100 in Guntur and Warangal Market. Fresh Arrival continue to increase daily. According to market sources cotton prices are likely to fall next week by Rs.50/- in the North and by Rs.500/- in the rest of the market due to increase in arrival pressure.

As per the latest data released by US Agriculture Department on Wednesday, India cotton output estimates remain at 24 million bales for 2008/09, but consumption and exports have been revised down,. Amid a global economic slowdown, exports are expected to drop 31 percent, to 5.1 million bales from 7.4 million bales last year, due to weak international cotton prices, the report said. Demand for cotton is forecast down by nearly 1 million bales from a year ago to 17.5 million bales. The marketing year began in June. Although late season planting in the central states and record planting in Andhra Pradesh have increased the expected harvest area, weather conditions will likely hold yields down.

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