Cotton Prices Drop in Andhra & Telangana Amid Weak Demand

New Delhi, July 27 (Commodities Control): Cotton prices in Andhra Pradesh and Telangana experienced a decline on Saturday due to diminished demand from spinning mills and reduced daily arrivals of cotton in these states.

Traders attribute the price softening to weaker ICE cotton futures, which have been pressured by increased production estimates. Consequently, domestic mills have reduced their purchases, impacting local cotton prices. The profitability of cotton exports remains low, and local demand for cotton yarn is weak, limiting the potential for significant price increases in the near term.

According to the Indian Meteorological Department (IMD), both states have experienced above-average rainfall from June 1 to July 26. Telangana has received 30% more rain than normal, while Andhra Pradesh has seen a 49% increase. This favorable weather may have positive implications for the cotton crop, but it has not yet translated into higher prices due to current market conditions.

Cotton arrivals in Andhra Pradesh and Telangana were recorded at 1,600 bales today. Specifically, Andhra Pradesh saw 1,500 bales, while Telangana received 100 bales. This marks a slight decrease from the previous trading day's total of 1,700 bales.




(By CommoditiesControl Bureau: +91-9820130172)