Cotton Prices Rise in North India Amid Low Daily Arrivals

New Delhi, December 05 (Commodities Control): Cotton prices witnessed an upward trend in Punjab, Haryana, and Rajasthan on Thursday, driven by increased purchases from spinning mills. However, a decline in daily arrivals of Kapas noted in the states mandis.

According to market sources, reduced supplies and robust mill demand have pushed cotton prices higher in the spot market. Additionally, ICE cotton futures recorded mixed trends on Wednesday, with prices showing a slight decline. The December-24 contract slipped by 0.09 cents to 72.6 cents, while the March-25 contract fell by 0.02 cents to 71.25 cents. However, the May-25 contract showed a minor dip of 0.05 cents to 72.5 cents.

Encouragingly, ICE electronic trading today signaled a positive start, further bolstering market sentiment. Traders attribute the rise in cotton prices to weakened sales from ginning mills at prevailing rates and expectations of improved demand for cotton yarn during the festive season. Additionally, lower production estimates in these states have forced mills to source cotton from other regions, amplifying the supply-demand mismatch.

Cottonseed prices remained stable, ranging between ₹3,350 and ₹3,450 per quintal in Punjab and Haryana and ₹3,400 to ₹3,600 per quintal in Upper Rajasthan.

The mandi arrivals were significantly lower, with Haryana reporting around 5,000 bales, Rajasthan at 12,500 bales, and Punjab at a mere 1,000 bales.

In the domestic futures market, cotton prices showed an upward trajectory. On NCDEX, the April-25 Kapas futures contract rose by ₹3 to ₹1,533 per 20 kg. On MCX, the November-24 cotton futures contract gained ₹460 to settle at ₹55,850 per candy.

Spot delivery prices in key markets were quoted as follows:
- Punjab: ₹5,610 to ₹5,630 per maund (₹53,400 to ₹53,600 per candy)
- Haryana: ₹5,610 to ₹5,630 per maund (₹53,400 to ₹53,800 per candy)
- Upper Rajasthan: ₹5,610 to ₹5,650 per maund (₹53,400 to ₹53,800 per candy)
- Pilani, Rajasthan: ₹5,610 to ₹5,650 per maund
- Lower Rajasthan: ₹54,200 to ₹54,300 per candy

With festive demand expected to pick up, further price increases is anticipated in the coming days.



(CommoditiesControl Bureau; +91-9820130172)