Cotton prices rule firm

COIMBATORE: Cotton lint prices displayed a stronger trend during the second fortnight of March as overall arrivals of cotton touched around 260 lakh bales which was 2.5 per cent more that last season.

The firm price sentiment may prevail for some more time as the arrivals were dwindling, South India Cotton Association (SICA) said in its market report for the period.

Prices showed strong tendency in Punjab, Haryana and Rajasthan where J-34 Saw Ginned ruled at rs.2950 to rs.3010 per maund spot and around 40 lakh bales crop was estimated from this belt, it said.

Lint prices moved upwards backed by investors' interest and export demand in Gujarat, as Shankar-6 quoted at Rs.28,500 to Rs.28,900 and V-797 at Rs.20,300 to Rs.21,000 per candy spot. Crop in this major cotton belt was estimated between 95 to 100 bales.

With Mech-1/H4 ruling at Rs.27,500 to Rs.28,500 per candy spot,prices continued to show upward trend in Madhya Pradesh, while prices were in the range between Rs.27,500 and Rs.28,500 per candy spot in Maharashtra.

Prices showed strong trend in Andhra Pradesh, with MCU 5 ruling at Rs.28,500 to Rs.29,500 per candy spot and crop here was estimated between 50 and 60 bales.

DCH lots in Karnataka quoted at Rs.40,000 to Rs.43,000 per candy spot and crop was estimated around 11 lakh bales, while in Tamil Nadu, prices displayed an upswing trend, where crop arrivals were almost over, SICA said.