Steady-to-firm conditions marked trading on the Mumbai cotton market last week. The announcement of higher export quota at the beginning of the season, not only halted the declining trend but helped prices to move up, even though the arrivals in Punjab had been steadily on the rise. In view of this most of the new crop supplies in Punjab were of Bengal deshi for which the export quota had been already announced. Besides Punjab, certain cotton centres in Gujarat, too, had started receiving cottonseed which would be converted to cotton bales soon. The inflow both in Punjab and Gujarat will rise in the next week.
A good crop can be expected in Gujarat, Maharashtra and Madhya Pradesh. The inflow in Madhya Pradesh would also commence around Dassera. Consequently, the supply position will be favourable.
At the same time sellers were awaiting the entry of Cotton Corporation of India to arrest the declining trend. Traders will feel profitable to buy as soon as the Cotton Corporation starts its buying operations in Punjab and other centres.
Purchases of cotton by mills had been very limited due to paucity of funds and limited demand for cotton cloth.
Mills are looking forward for festival demand in cloth and only thereafter will they come to the market in big way for lifting cotton. Punjab reported daily arrivals already crossing 1,500 bales a day Meanwhile prices of Bengal deshi firmed up with ready transactions taking place higher at Rs 1,250-1,275, October delivery at Rs 1,220-1,260 and November at Rs 1,200-1,225 per Bengal maund. Saw gin October ruled at Rs 1,825-1,850 and November at Rs 1,750-1,800.
Cloth Weekly:-Activity on the wholesale cloth market was limited over the last week with traders awaiting the start of festival demand. However, demand for Dassera and Diwali would be fairly good according to trade sources.
For the tenth year in succession monsoon was generally favourable helping in a record production over the season. Consequently, the demand for cloth for festival season to be followed by marriage season will be fairly good.
The demand was at a low ebb, despite the end of the 'shradha paksha'. However, the demand at the upcountry centres had been substantially higher, indicating start of the purchases for the festival season. Bhilwara reported hectic activity as the demand from all-over the country had been reported there in suitings and shirtings. Good demand was also reported from Surat. Surat saris were in good demand even here as well as Ujjain, Delhi and other North Indian consuming centres.
Ahmedabad also reported moderate rise in demand.Sources said the demand for mill varieties had been limited but retail and semi-wholesale demand for powerloom had been satisfactory.