New Delhi, January 22 (Commodities Control): Cotton prices in Karnataka softened on Wednesday due to weak demand from the state's spinning mills. This decline in prices came despite stable daily arrivals of Kapas (raw cotton) in the state's mandis.
Traders attributed the price fall to reduced purchases by spinning mills, which are facing weaker-than-expected export demand for yarn. Additionally, the Cotton Corporation of India (CCI) continues to sell cotton purchased in the previous season, putting further pressure on the spot market. As a result, spinning mills are cautious and are not increasing their cotton inventory, which has led to limited upward movement in cotton prices. While Kapas prices rose by Rs 50 in the state, cottonseed prices remained stable.
Market and Futures Update:
- In the domestic futures market, the price of Kapas in the April-25 futures contract on NCDEX weakened by Rs 5.5, settling at Rs 1,489 per 20 kg.
- In contrast, the price of cotton in the January-25 futures contract on MCX increased by Rs 80, reaching Rs 53,700 per candy.
Cotton Arrivals in Karnataka:
- The total arrival of Kapas in Karnataka's mandis was recorded at 12,000 bales, which was the same as the previous trading day.
Given the weak demand from spinning mills and the ongoing sales of cotton by CCI, experts expect cotton prices in Karnataka to remain under pressure in the near term, with no significant rise anticipated unless there is a shift in export demand or market conditions.
(676).png)
(By CommoditiesControl Bureau; +91-9820130172)