Cotton Prices Stable in Northern States Due to Limited Purchases from Spinning Mills

New Delhi, May 21 (Commodities Control): Cotton prices remained stable in the markets of the North Indian states of Punjab, Haryana, and Rajasthan on Tuesday, primarily due to limited purchases from spinning mills. The daily arrival of Kapas in these states also maintained stability.

ICE cotton futures saw a slight improvement on Monday, with the July-24 futures contract rising by 0.14 cents to 76.03 cents, the December-24 futures contract increasing by 0.04 cents to 75.01 cents, and the March-25 futures contract gaining 0.05 cents to 76.63 cents. However, Tuesday's electronic trading of ICE cotton prices opened weak.

Traders indicated that the marginal fluctuations in the international cotton market have led mills to adopt a wait-and-see approach, purchasing cotton only as needed, thereby stabilizing cotton prices in the spot market. Experts suggest that export deals for cotton and yarn are currently unprofitable due to a decline in global cotton prices this month. Consequently, a rise in domestic spot market prices is unlikely. Kapas and cottonseed prices also remained stable across these states.

The arrival of Kapas in the producer mandis of Punjab, Haryana, and Rajasthan was reported at 1,400 bales (one bale equals 170 kg), consistent with the previous working day's figures.

In terms of pricing, Kapas was quoted at Rs 6,500 to Rs 6,800 per quintal in the mandis of Punjab and Haryana, and Rs 6,600 to Rs 6,900 per quintal in Upper Rajasthan. Cottonseed prices ranged from Rs 2,500 to Rs 2,950 per quintal in Punjab and Haryana, and Rs 2,550 to Rs 3,150 per quintal in Upper Rajasthan.

The domestic futures market saw a declining trend in cotton prices today. Kapas prices in the April-25 futures contract on NCDEX weakened by Rs 0.5 to Rs 1,574 per 20 kg, while cotton prices in the May-24 futures contract on MCX decreased by Rs 400 to Rs 55,700 per candy.

Spot delivery prices in Punjab were quoted at Rs 5,725 to Rs 5,750 per maund (Rs 54,500 to Rs 54,700 per candy). In Haryana, prices for spot delivery were Rs 5,625 to Rs 5,650 per maund (Rs 53,500 to Rs 53,800 per candy).

In Upper Rajasthan, spot delivery prices ranged from Rs 5,375 to Rs 5,825 per maund (Rs 51,200 to Rs 55,400 per candy), while in Pilani, Rajasthan, they varied from Rs 5,375 to Rs 5,825 per maund. In Lower Rajasthan, prices for spot delivery increased, ranging from Rs 56,500 to Rs 56,800 per candy.



(By CommoditiesControl Bureau: +91-9820130172)