A firm tendency prevailed on the Mumbai cotton market last week. Prices firmed up by Rs 400-500 per candy. The sentiment was boosted by the announcement of rise in prices of old and new season cotton to the extent of Rs 300-400 by the Maharashtra Federation.
This had bullish impact on the prices. Now fresh supplies were negligible as most of the crop had already been marketed. At present, only the Maharashtra Federation is having larger unsold stocks. The only restraining factor for the rise in prices has been unsold larger stocks with the federation. With further hike in prices by the federation, traders and farmers have been demanding higher prices.
The inflow in Punjab was hardly 1000 bales a day, while mills had to make purchases to run the units. With electricity shortage and piling up of stocks in the coming three months, mills are cautious about fresh purchases. Even higher prices have been a stumbling block for the mills with poor financial position.
Some mills in the city had not cleared the dues for cotton in the last two years. Hence, traders were not keen to supply cotton to such units.
Traders were contemplating legal remedies to recover money from the sick units. So, they have to be careful in selecting the buyers.
In view of the high prices of Punjab cotton, mills had to switch over to other available cheaper variety. Supplies were reported for Kaolin, Wagged and Kale in Gujarat, but on a reduced scale.
With firmness in Punjab cotton, prices had shot up sharply in Gujarat varieties too. Mills had to pay higher prices.
Punjab J-34 saw gin was in demand at Rs 1,675-1,775. F-414 was quoted at Rs 2,020-2,040 per Bengal maund. In Gujarat Cotton, Sankar-4 variety was stated between Rs 1,500 and Rs 20,150 per candy. Kale was in demand at Rs 12,700. Wagged was in demand at Rs 13,000 and Kaolin at Rs 14,500-15,000 per candy.
Cloth: Activity was at a low ebb on the Mumbai cloth market last week.
The gumastas' announcement of going on an indefinite strike, kept upcountry traders away from the city for buying purposes. In the circumstances, the market wore a des-erted look. According to trade, the demand season has virtually ended, though upcountry centres still showed good interest for marriage season sarees, dress materials, summer fine and super fine varieties.
But upcountry traders maintained that demand slowdown had already started and after June 15, trading at various centres would stop or reduce a lot. Upcountry traders were also not willing to build any inventory and preferred sale of the stocks on hand.
Prices quoted on the Mulji Jetha market were: bleeched long cloth Nehrupark 81 cm, Rs 12.17, and 89 cm, Rs 13.35; bleeched poplin Redrose 86 cm, Rs 13.68; bleeched poplin Jewel of India 89 cm, Rs 24.27; bleeched sheeting Lovely Dream 132 cm, Rs 23.15; bleeched sheeting Super Star 175 cm, Rs 39.65; bleeched mulls Fancy Queen 110 cm, Rs 12.50 and Dyed cambric Evening Star 112 cm, Rs 29.10 per metre.
