DAILY COTTON MARKET REPORT DT. 23/08/2008

NORTH
It was partly cloudy at some centers of Punjab, Haryana and North Rajasthan but no rain were recorded in cotton growing area. Market trend was better in both ready as well as forward delivery. Haryana J-34 RG. forward delivery Full Sept. October & November delivery was quoted Rs. 2655/-, 2560/- & 2530/- per md. respectively. Crop is progressing well under ideal conditions.

GUJARAT
It was clear in entire state. Market trend is steady at their previous levels. Crop is progressing well under ideal conditions. December delivery Shanker-6 was quoted Rs. 25,000/- per candy.

MAHARASHTRA
Weather was clear in entire state. Market trend was steady. Local Cooperative mills and Southern mills were buyers.

SNIPPETS:

1. US Cotton futures settled modestly lower as the market returned some gains from yesterday's rally amid spillover pressure while trade buying protected against a sharper sell off.

2. Export of cotton yarn from Pakistan during July,08 totaled to 44,404 tons,16.3% down from July,07. Cumulative export of cotton yarn during Jan.-July,08 is down by 18.3% from corresponding period last year.

3. Pakistan imported 3.7 million bales (480 lbs) during 2007-08 and exported 284,389 bales in the said period.

4. In China CNCRC has begun its procurement of cotton for reserve through auctions on China National Cotton Exchange (CNCE).

5. Foreign Exchange Reserve of India fell by $3.8 billion to $296.21 billion during the week ended Aug.,15,2008.

Morning’s upper air cyclonic circulation over Orissa and neighbour hood persists. The other upper air cyclonic circulation over West Uttar Pradesh and adjoining areas of northwest Madhya Pradesh & East Rajasthan also persists.

The axis of monsoon trough passes through Anupgarh, Hissar, Aligarh, Azamgarh, Dhanbad, Sagar Islands and thence southeastwards to eastcentral Bay of Bengal.

Under this scenario, scattered to fairly widespread rainfall activity is likely over Haryana, Uttarakhand, West Uttar Pradesh, Orissa and Chhattisgarh during next 24 hours.

Generally sub-dued rainfall activity is likely over remaining parts of the country during next 2-3 days. However, rainfall activity is likely to increase over East Uttar Pradesh, Bihar, Sub-Himalayan West Bengal & Sikkim and northeastern states from 25th onwards. (K.C.T & ASSOCIATES)