“India, which is also the world’s second-biggest exporter of cotton, had
given permission for exports of 5.5 million bales in the 2010/11 cotton
year that began on October 1, but had asked exporters to ship the entire
quantity from November 1 to December 15. Exporters managed to ship only
about 3 million bales by the deadline as unseasonal rains in October
and November delayed arrivals of bales at domestic markets. “Traders
were very active. They were expecting the government will allow exports
from first or second week of January,” said Chirag Patel, chief
executive officer at Jaydeep Cotton Fibers Pvt Ltd, one of the country’s
leading exporters.
” “..
In India, the prices of the most common Shankar-6 variety rose by 900
rupees to 43,000 rupees ($952.8) per candy of 356 kg each on Wednesday
afternoon. “Indian cotton is much cheaper than Chinese or US cotton.
Exporters are expecting buyers in China will pay higher prices to secure
supplies,” said Dharmesh Lakhani, a trader and exporter at Rajkot in
the western state of Gujarat. Overseas demand for Indian cotton has
increased after bad weather hit crops in China and Pakistan, both
leading consumers. ” “..
US cotton futures fell more than 3 percent on Wednesday as the market
took a breather after climbing to an all-time high in the last session
on speculative buying and tight supplies, while China’s cotton market
lost more that 2 percent. “Overall cotton arrivals have picked up, but
still supply of quality fibre is not sufficient,” said Paresh Valia, an
exporter based in Mahuva, in Bhavnagar district of Gujarat. ” “..
Domestic cotton arrivals – bales which are sold domestically at Indian
spot markets – have risen 1.9 percent so far in the 2010/11 season over a
year ago on higher output and accelerated harvesting after the weather
turned dry, the state-run Cotton Corp of India said on December 20.
India is likely to produce more than 32.5 million bales of cotton in
2010/11, topping last year’s 29.5 million bales, industry and government
officials have said. ”
Date:12/23/2010
Source:www.fibre2fashion.com