New Delhi, April 15 (Commodities Control): Cotton prices continued to dip for the fifth straight trading day in Lower Rajasthan on Monday, impacted by diminished demand from spinning mills. This decline coincided with a surge in the daily arrivals Kapas in the state’s mandis.
Traders noted that cotton prices on the global market are currently lower than those in India, making exports less profitable. Additionally, there is a softening trend in local demand for cotton yarn, leading spinning mills to purchase cotton strictly based on immediate needs. As a result, cotton prices remained subdued in the local spot market.
Ginning mills are also getting reduced margin, as they hold stock of higher-priced Kapas, making current price levels unprofitable for them. Despite these conditions, traders see little chance for a significant uptick in cotton prices soon. While Kapas prices held steady, prices for cottonseed saw a significant drop of Rs 125.
In today's trading on the domestic futures market, cotton showed a downward trend. The April-24 futures contract for Kapas on the NCDEX fell by Rs 3.5 to Rs 1,500 per 20 kg.
Today’s arrivals of Kapas in Lower Rajasthan's markets were notably higher at 800 bales, each weighing 170 kg, up from 500 bales the previous trading day.
(CommoditiesControl Bureau; +91-9820130172)
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