Friday, 16 September 2011
20 per cent crop is likely to be damaged in Punjab
Heavy rainfall in Punjab yesterday, 20 per cent crop is likely to be damaged in the state while the destruction may be limited to 5 per cent each in Haryana and Rajasthan.
Traders said that the total production may be less than expected due to rainfall and water logging. Earlier, total output was expected at 52 lakh bales which will now is anticipated to reduce to 45-46 lakh bales. Crop will also get delayed.
Traders are of the opinion that with limited stock of old crop and a delay in the arrival of new crop, supply will be tight in the near future thereby resulting in a hike in price. It seemed that prices will move down after September but late arrival will make the trend bullish in October too as millers will be buying amid tight supply.
The unsold stock of old crop in north India is 28,000 bales only and the good arrival will start after October 1.
Cotton traded up Rs 100-150 a maund in north India markets Friday amid the anticipation of crop damage. However, there are no sellers at these quotes. Total arrival in the country was 5,600 bales.
Demand for cotton yarn is reported to be strong. Traders said that the exporters are in panic eyeing the soon ending DEPB scheme. A weak INR is also supporting the exports.
Millers are quoting the export price at USD 4.15 per kg. In domestic market, 30 count combed yarn is being traded at Rs 195 a kg while PC single 30 count at Rs 185 a kg.
In Punjab, ready delivery S-G cotton traded at Rs 4,500- 4,525 a maund. In Haryana, it offered at Rs 4,400- 4,425 while in Rajasthan, ready delivery cotton quoted at Rs 4,400- 4,425 a maund.
In Punjab, October first week delivery quoted at Rs 4,200- 4225 a maund.
Traders said that the total production may be less than expected due to rainfall and water logging. Earlier, total output was expected at 52 lakh bales which will now is anticipated to reduce to 45-46 lakh bales. Crop will also get delayed.
Traders are of the opinion that with limited stock of old crop and a delay in the arrival of new crop, supply will be tight in the near future thereby resulting in a hike in price. It seemed that prices will move down after September but late arrival will make the trend bullish in October too as millers will be buying amid tight supply.
The unsold stock of old crop in north India is 28,000 bales only and the good arrival will start after October 1.
Cotton traded up Rs 100-150 a maund in north India markets Friday amid the anticipation of crop damage. However, there are no sellers at these quotes. Total arrival in the country was 5,600 bales.
Demand for cotton yarn is reported to be strong. Traders said that the exporters are in panic eyeing the soon ending DEPB scheme. A weak INR is also supporting the exports.
Millers are quoting the export price at USD 4.15 per kg. In domestic market, 30 count combed yarn is being traded at Rs 195 a kg while PC single 30 count at Rs 185 a kg.
In Punjab, ready delivery S-G cotton traded at Rs 4,500- 4,525 a maund. In Haryana, it offered at Rs 4,400- 4,425 while in Rajasthan, ready delivery cotton quoted at Rs 4,400- 4,425 a maund.
In Punjab, October first week delivery quoted at Rs 4,200- 4225 a maund.
