Indian prices ease

The Cotton Corporation of India is reported to be procuring seed cotton actively at the Minimum Support Price. CCI has extended operations to Gujarat, according to local reports, though purchases there have thus far been limited in volume. Interior asking rates for Shankar-6 have eased by Rs. 150 since yesterday, to Rs. 32,600 per candy, ex-gin, still marginally above the lint equivalent of the MSP, by our calculation. At the prevailing exchange rate, the equivalent dollar value is around 67.80 US cents per lb.

Prices on all months of the ACE and MCX futures platforms have advanced in early trading.

Nationwide, daily seed cotton arrivals have declined to around 75,000 lint equivalent bales (of 170 kgs), including 18,000 from Gujarat and 12,000 from Maharashtra. Scattered precipitation and moderate cloud cover have been in evidence over central regions.

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