Cotton Prices Surge for the Second Consecutive Day in North Indian States

New Delhi, May 23 (Commodities Control): Cotton prices witnessed a notable surge on Thursday across the markets of North Indian states including Punjab, Haryana, and Rajasthan, attributed to sustained purchases from spinning mills. Meanwhile, the daily arrival of Kapas remained steady in these states' mandis.

The rise in ICE cotton futures prices for the third consecutive day, with July-24 futures contract escalating by 3.00 cents to 79.38 cents, December-24 futures contract up by 2.00 cents to 77.28 cents, and March-25 futures contract increasing by 1.94 cents to 78.83 cents, laid the groundwork for the uptick in domestic cotton prices. However, today's electronic trading of ICE depicted a weak opening for cotton prices.

Traders pointed out that a three-point increase in cotton prices in the international market on Wednesday led to the current surge, driven by sustained purchases from domestic spinning mills. Notably, ginners are experiencing discrepancies in prevailing prices, consequently impacting sales. Yet, the anticipated surge in local and export demand for yarn has not materialized, hence the trend of domestic cotton prices will depend on ICE cotton futures.

Accompanying the stability in Kapas arrivals, cottonseed prices remained unchanged in these states. The arrival of Kapas in the producer mandis of Punjab, Haryana, and Rajasthan stood at 1,400 bales, matching the previous trading day's figures.

In Punjab and Haryana, Kapas prices ranged from Rs 6,500 to Rs 6,900 per quintal, while in Upper Rajasthan, they remained at Rs 6,600 to Rs 7,000 per quintal. Correspondingly, cottonseed prices were quoted at Rs 2,600 to Rs 3,050 per quintal in Punjab and Haryana, and Rs 2,650 to Rs 3,150 per quintal in Upper Rajasthan.

However, the domestic futures market experienced a downward trend today. Kapas prices in April-25 futures contract on NCDEX weakened by Rs 0.5 to Rs 1,600.5 per 20 kg, while cotton prices in May-24 futures contract on MCX dipped by Rs 80 to Rs 55,900 per candy.

Spot delivery prices for cotton in various regions were as follows:
- Punjab: Rs 5,775 to Rs 5,800 per maund, equivalent to Rs 54,900 to Rs 55,200 per candy.
- Haryana: Rs 5,675 to Rs 5,700 per maund, i.e., Rs 54,000 to Rs 54,200 per candy.
- Upper Rajasthan: Rs 5,450 to 5,850 per maund, translating to Rs 51,800 to Rs 55,900 per candy.
- Pilani, Rajasthan: Rs 5,450 to Rs 5,850 per maund for spot delivery.
- Lower Rajasthan: Cotton prices surged from Rs 56,800 to Rs 58,200 per candy.



(By CommoditiesControl Bureau: +91-9820130172)