Cotton Steady, Cloth Insipid

A steady-to-better tendency was witnessed in the Mumbai cotton market last week. In view of the prolonged dry weather condition likely to affect the cotton output, sellers were sitting tight demanding higher prices. At the same time, supplies dwindled as most of the crop had already been marketed. In Punjab, there was no inflow, and only small quantities of unsold stocks are being offered for sale at higher levels. However, the demand was poor because of the drop in cotton cloth purchases. Now, traders are looking forward for the start of the new season.

It was learnt that some transactions have already be entered into for the Maharashtra Barsi new crop around Rs 2,100, and the business was of about 100 bales. Normally, the new crop of Latu-Barsi would be in market around August 15. In view of the turn in the monsoon this season, the plucking of cotton would be delayed if rains start again in August. In view of lower crop potential, general interest for these varieties had been very limited. The output is expected to be consumed by the mills in that area. The Maharashtra Federation would not start purchasing cotton for new season so early. Since it had been granted permission to procure cotton for two years, the federation is expected to buy cotton this season too on a monopoly basis.

Prices ruled steady-to-better with prices firming up in Gujarat short and long staple qualities. Despite larger crop, Shankar-four prices hardened due to good mill demand for the quality and poor fresh supplies. Kala, Waghad and Kalyan prices hardened by Rs. 200-300 per candy on poor supplies and moderate mill demand.

Punjab saw gin was in demand at Rs. 1,825-1,860 and F-414 at Rs. 2,060-2,080 per Bengal maund. The turnover was poor as mills buying was at a very low ebb. Gujarat Shankar-four inferior changed hands between Rs. 17,500-19,000 and superior quality at Rs. 19,500-21,000 per candy. Kalagin gained Rs. 300 at Rs. 12,500. Waghad was demanded higher at Rs. 13,200 and Kalyan at Rs. 14,200-14,800 per candy.

Cloth: In a limited activity, trading on the Mumbai cloth market remained very dull last week. Reports from upcountry centres too indicated a fall in demand for school uniform cloth and other items. In the absence of the marriage season, buying for costly sarees, suiting and shirting had dropped. Though many producing centres were offering suiting and shirting below cost, the demand remained very poor. Now, traders are waiting for the start of festival demand in August when traders from the South, West Bengal and other parts of the country would start purchases.

In Gujarat and Maharashtra, the demand would be fairly good for Janmashthami and Raksha Bandhan festivals. In view of the tense political situation and rioting in Gujarat and Maharashtra, the demand for festival season had been delayed. Traders refrained from fresh purchases on apprehension of trouble in various parts of the country.

The tense situation in Bihar has caused complete stoppage of trading with that area, outstanding have been unduly detained, and it is doubtful whether the same would be cleared soon. At the same time, traders are worried about the prolonged absence of rainfall in various parts of the country which would affect the agricultural production, and would ultimately adversely affect the demand for cloth.

According to reports in the Mulji Jetha market, Calcutta traders, who had recently made purchases from the city, were now sending SOS messages not to send goods as well as canceling earlier ordersTraders at others places too were refraining from piling up inventory.