Cotton Prices Dip in North India Amid Weak Demand from Spinning Mills

New Delhi, April 10 (Commodities Control): Cotton prices experienced a downturn on Wednesday across the markets in North Indian states, including Punjab, Haryana, and Rajasthan, attributed to subdued demand from spinning mills. Concurrently, there was an uptick in the daily arrivals of Kapas in the mandis of these states.

This softening of cotton prices follows a downtrend observed in the ICE cotton futures earlier on Monday. Specifically, the May-24 futures contract saw a decline of 0.61 cents, settling at 86.04 cents. The July-24 futures contract diminished by 0.55 cents to close at 87.84 cents, and the December-24 futures contract dropped by 1.18 cents, finishing at 81.36 cents. Despite this, a slight rebound was noted in today's electronic trading on ICE.

The cotton-growing areas in North India are witnessing clear weather conditions. Market traders pointed out that a slump in global cotton prices on Tuesday curtailed profit margins for exports from the domestic market, leading to reduced procurement by spinning mills in these states. However, with farmers in these states having little to no surplus Kapas stock and the quality of market arrivals being on the lower side, a significant drop in cotton prices is deemed unlikely. Moreover, the inventory of cotton at spinning mills remains low, further stabilizing prices. Cottonseed and Kapas prices also remained stable in the northern states.

Today's arrivals of Kapas in the producer mandis of Punjab, Haryana, and Rajasthan were reported at 5,000 bales, each weighing 170 kg. This marks a slight increase from the previous day's arrival of 4,800 bales.

Kapas prices ranged between Rs 6,600 to Rs 6,900 per quintal in the Punjab and Haryana markets, while in Upper Rajasthan, prices were slightly higher, ranging from Rs 6,700 to Rs 7,000 per quintal. Cottonseed was quoted at Rs 2,200 to Rs 2,550 per quintal in Punjab and Haryana, and Rs 2,300 to Rs 2,650 per quintal in Upper Rajasthan.

A bearish sentiment was also observed in the domestic futures market, with April-24 futures contract for Kapas on the NCDEX weakening by Rs 4.5 to Rs 1,521 per 20 kg.

Spot delivery prices for cotton varied across regions. In Punjab, prices were quoted between Rs 5,950 to Rs 5,975 per maund, translating to Rs 56,600 to Rs 56,900 per candy. Haryana saw similar levels, with prices ranging from Rs 5,875 to Rs 5,975 per maund. Upper Rajasthan reported a broader range, with prices from Rs 5,450 to Rs 6,125 per maund. In Lower Rajasthan, prices edged higher, reaching Rs 58,800 to Rs 59,000 per candy.


(CommoditiesControl Bureau; +91-9820130172)