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

New Delhi, April 11 (Commodities Control): The cotton market in the North Indian states of Punjab, Haryana, and Rajasthan continues to face downward pressure for the second consecutive day, with prices remaining weak owing to diminished demand from spinning mills. This decline in demand has led to a decrease in daily Kapas arrivals across these states.

The cotton market experienced a mixed performance in the ICE cotton futures on Wednesday. The May-24 futures contract saw a decrease of 0.673 cents, closing at 85.31 cents, while the July-24 futures contract dropped by 0.77 cents to 87.07 cents. Conversely, the December-24 futures contract witnessed a slight increase of 0.07 cents, settling at 81.43 cents. This trend of mixed performance continued into today's electronic trading session on ICE.

Traders indicate that the recent global downturn in cotton prices has led to reduced purchases by domestic spinning mills, contributing to the consecutive days of price declines. Experts point out that the weakened international market has not only narrowed profit margins for cotton exports but has also impacted the export demand for cotton yarn. Despite these challenges, ginners are finding it difficult to operate profitably at lower price levels, suggesting a potential for limited bullish or bearish movements in the spot market going forward.

Kapas prices have shown some stability in these regions, whereas cottonseed prices have seen a decline. The arrival figures for Kapas have dropped to 4,600 bales compared to 5,000 bales on the previous trading day, each bale weighing 170 kg.

In the mandis of Punjab and Haryana, Kapas prices ranged from Rs 6,600 to Rs 6,900 per quintal. Meanwhile, in Upper Rajasthan, the price span was slightly higher, from Rs 6,700 to Rs 7,000 per quintal. Cottonseed prices were reported at Rs 2,200 to 2,500 per quintal in Punjab and Haryana, and Rs 2,300 to 2,600 per quintal in Upper Rajasthan.

Spot delivery prices of cotton varied across regions:
- In Punjab, prices were quoted between Rs 5,925 to Rs 5,950 per maund (Rs 56,400 to Rs 56,700 per candy).
- Haryana saw prices range from Rs 5,850 to Rs 5,950 per maund (Rs 55,700 to Rs 56,700 per candy).
- Upper Rajasthan reported prices between Rs 5,500 to Rs 6,100 per maund (Rs 52,400 to Rs 58,100 per candy).
- Pilani, Rajasthan, matched Upper Rajasthan's pricing for spot delivery.
- Lower Rajasthan experienced a slight increase in spot delivery prices from Rs 58,600 to Rs 58,800 per candy.



(CommoditiesControl Bureau; +91-9820130172)