Cotton Prices Surge in North Indian States Amid Sustained Demand; Arrivals Decrease

New Delhi, May 24 (Commodities Control): Cotton prices saw an upward trend on Friday across the markets of Punjab, Haryana, and Rajasthan, driven by sustained purchases from spinning mills and a decline in daily arrivals of Kapas.

ICE cotton futures prices continued their rise for the fourth consecutive day on Thursday. The July-24 futures contract increased by 2.34 cents to 81.72 cents, the December-24 futures contract rose by 1.34 cents to 78.62 cents, and the March-25 futures contract went up by 1.20 cents to 80.03 cents. However, today's electronic trading of ICE showed a weaker opening for cotton prices.

Traders attribute the domestic price surge to a significant rise of five to six cents in international cotton prices over the past two days. This has led to increased purchasing activity from spinning mills within the domestic market. Despite the weak opening in electronic trading today, the domestic market prices continue to be influenced by the ICE cotton futures. Additionally, small spinning mills in the region report low cotton stock levels, while ginning mills find current prices non-profitable. Kapas and Cottonseed prices have also stabilized in these states.

Daily arrivals of Kapas in the North Indian markets dropped to 1,200 bales (each weighing 170 kg) compared to 1,400 bales on the previous working day.

In the mandis, Kapas prices were quoted between Rs 6,500 to Rs 6,900 per quintal in Punjab and Haryana, and Rs 6,600 to Rs 7,000 per quintal in Upper Rajasthan. Cottonseed prices ranged from Rs 2,600 to Rs 3,050 per quintal in Punjab and Haryana, and Rs 2,650 to Rs 3,150 per quintal in Upper Rajasthan.

The domestic futures market also exhibited an upward trend. On NCDEX, the April-25 futures contract for Kapas increased by Rs 6.5 to Rs 1,617 per 20 kg, while the May-24 futures contract on MCX saw a rise of Rs 80, reaching Rs 56,580 per candy.

Spot delivery prices in Punjab were quoted at Rs 5,800 to Rs 5,825 per maund (equivalent to Rs 55,200 to Rs 55,400 per candy). In Haryana, spot delivery prices ranged from Rs 5,725 to Rs 5,750 per maund (Rs 54,500 to Rs 54,700 per candy).

Upper Rajasthan saw spot delivery prices between Rs 5,475 to Rs 5,925 per maund (Rs 52,100 to Rs 56,400 per candy), while in Pilani, Rajasthan, prices ranged from Rs 5,475 to Rs 5,925 per maund. In Lower Rajasthan, spot delivery prices rose to Rs 57,200 to Rs 57,400 per candy.



(By CommoditiesControl Bureau: +91-9820130172)