MUMBAI – Indian cotton prices are likely to extend last week’s gains to hit a record high, lifted by strong demand from exporters to fulfil their exports obligations and as overseas markets jump, dealers said. “Exporters were very active in the spot market. Arrivals were there, but quality fibre was in short-supply,” said a senior official at Gujarat State Cooperative Cotton Federation. India’s cotton export deadline will expire on Feb. 25 for the remaining unshipped quantity of the 5.5 million bales allowed for overseas sales in the 2010/11 season. Overseas demand for Indian cotton has increased after bad weather hit crops in China and Pakistan, both leading consumers. In India, the price of the most common Shankar-6 variety rose by 400 rupees to 45,000 rupees per candy of 356 kilograms each on Tuesday, data from the Cotton Association of India showed. The price hit a record high of 46,200 rupees last year.
The New York cotton futures contract was up 2.79 percent at $1.4538 per pound. Domestic cotton arrivals at Indian spot markets in the 2010/11 season rose seven percent on year, the state-run Cotton Corp of India said. India is likely to produce a record 32.9 million bales of cotton in 2010/11, topping last year’s 29.5 million bales, a senior government official said.
Comments are closed.