Cotton Prices Dip in North India Amid Weak Demand

New Delhi, April 5, 2024 (Commodities Control): Cotton prices experienced a downward trend for the third consecutive day on Friday across the markets of North Indian states including Punjab, Haryana, and Rajasthan. The decline in demand from spinning mills has been the primary cause for this downturn. Concurrently, Kapas arrivals decreased in these regions.

ICE cotton futures continued to show downward trend for the third day on Thursday. Notably, the May-24 futures contract fell by 1.84 cents to 87.14 cents, the July-24 contract saw a decrease of 1.61 cents to 88.57 cents, and the December-24 contract dipped by 0.58 cents to 83.52 cents. However, today's trading on ICE showed a mixed trend in cotton prices, indicating a potential stabilization.

Traders attribute the domestic price decline to a softening in the global market, which has, in turn, diminished export profits. This global trend has led to reduced purchases by domestic spinning mills, cautious of inventory build-up amidst falling prices. Despite the declining prices, ginners are hesitant to sell at lower rates, while cottonseed prices have found some stability.

The arrival of Kapas in the markets of these states was recorded at 4,400 bales (with each bale weighing 170 kg), showing a slight decrease from the 4,600 bales reported on the previous trading day.

Kapas prices ranged between Rs 6,600 and Rs 7,000 per quintal in the markets of Punjab and Haryana, and between Rs 6,700 and Rs 7,100 per quintal in Upper Rajasthan. Cottonseed prices were also noted, with Punjab and Haryana reporting prices between Rs 2,250 and 2,600 per quintal, and Upper Rajasthan between Rs 2,350 and 2,750 per quintal.

In the domestic futures market, a declining trend was observed. The April-24 futures contract for Kapas on the NCDEX weakened by Rs 3 to Rs 1,513 per 20 kg. Similarly, the May-24 futures contract for cotton on the MCX saw a reduction of Rs 160 to Rs 61,700 per candy.

Spot delivery prices for cotton also varied across regions:
- In Punjab, prices were quoted between Rs 5,950 and Rs 6,000 per maund, equating to between Rs 56,700 and Rs 57,200 per candy.
- Haryana reported prices between Rs 5,875 and Rs 5,925 per maund, or between Rs 56,000 and Rs 56,400 per candy.
- Upper Rajasthan saw prices range from Rs 5,500 to Rs 6,125 per maund, translating to between Rs 52,400 and Rs 58,300 per candy.
- Prices in Lower Rajasthan indicated a slight increase, quoted between Rs 58,800 and Rs 59,100 per candy.



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