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    Increased Supply Of Cotton Makes India'S Cotton Prices Stable.

    2012/10/12 15:37:00 45

    Supply To Meet The Price Of Cotton Mill In India

     

    Owing to the large supply of new cotton this year, it may be satisfied.

    Spin

    Factory demand, therefore, after four days of insipid, this week India cotton prices are expected to stabilize.


    Arunbhai Dalal, a cotton merchant in Gujarat, Ahmedabad, said: "textile mills have begun to purchase, because their stock of cotton is very small, which may provide support for the price. Although the supply of new cotton is relatively large, the demand for exporters is weak."


    India is the second largest cotton producer in the world, and cotton prices have been on a downward trend since mid September, because the supply of spot markets has increased since the beginning of cotton picking.


    China is the world's largest cotton consumer and the largest buyer of India. However, China's imports may be reduced by more than 50%, as China is trying to reduce its inventory. Therefore, India's export demand is expected to decline.


    India may only export 7 million packs in 2012/13 from October 1st, compared with a record high of 12 million 900 thousand packs a year ago.


    But over the past four days, textile mills have been buying a lot to stop prices from falling.


    Most Indians will celebrate Dussehra this month and celebrate Diwali in November.

    Because Indians like to buy new products during festivals.

    clothing

    Therefore, the demand for textile products during the festival will be expanded.


    On Tuesday, most of the domestic stock spot Carle 6 varieties rose slightly. The data of the India Cotton Association showed that it closed at 33100 rupees ($630) / candy 356 kg, about 80.4 cents / lb.


    On Tuesday, October cotton futures contract closed up 1.61% to 16400 rupees ($310) per pack.

    (about 83 cents per pound)


    Multi commodity exchanges (MCX) began trading cotton at the end of 2011.

    futures

    But volume has been small and price fluctuates.

    ($1 =52.6250 India rupee) (a pack of cotton =170 kg).

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