By Kavita Desai -Cogencis,
Tuesday, Aug 1
MUMBAI - Traders have struck export deals for 300,000 bales (1 bale = 170 kg) of new cotton crop in the last few days in a price range of 37,000-39,500 rupees a candy (1 candy = 356 kg) for delivery in Sep-Dec, trade officials said.
"The export deals are destined mostly to China and Vietnam," said Dharmendra Jain, director of Ahmedabad-based DP Cotton. Another 75,000-100,000 bales have been purchased by local mills for delivery in Oct-Nov, Deven Shah, partner at Bhaidas Cotton LLP, said. The contracts have been signed at around 39,500 rupees a candy for Sep-Oct delivery, while Nov-Dec delivery prices were fixed at 37,000-38,000 rupees range. The contracts have been struck at around 5% lower than last year's initial deals as expectation of at least 10% increase in cotton output next season has encouraged local mills to delay their forward purchases, awaiting further fall in prices.
India's cotton production in 2017-18 (Oct-Sep) is likely to be 37.5 mln bales, up 12% from the current season. In the current year, cotton exports from the country are likely to touch 6.3 mln bales, lower from 7.2 mln bales in 2016-17. Gujarat, Maharashtra and Andhra Pradesh are the major producers of export-quality cotton in the country, while J34 variety cultivated in Haryana is being bought by local mills mostly in north India. End (Source: Cogencis.com)