Cotton Prices Decline in Karnataka Amid Weak Demand; Daily Arrivals Up

New Delhi, March 20 (Commodities Control): Cotton prices witnessed a decline in Karnataka on Wednesday due to weak demand from spinning mills, coupled with an increase in the daily arrival of Kapas in the state mandis.

Traders attribute this decline to several factors, including the closure of March, limited trade due to Holi festivities, and spinning mills purchasing cotton only as per their immediate requirements. Additionally, laborers typically take leave during the Holi festival, further limiting cotton trade at present.

While the outstanding stock of cotton with mills is low, daily arrivals of Kapas are expected to decrease in the coming days. However, it's anticipated that cotton purchases from spinning mills will increase in April. Kapas prices in the state weakened by Rs 100, while cottonseed prices declined by Rs 50.

In the domestic futures market, cotton prices exhibited a declining trend. Kapas prices in the April-24 futures contract on NCDEX decreased by Rs 5.5 to Rs 1,562.5 per 20 kg. Similarly, cotton prices in the March-24 futures contract on MCX declined by Rs 80 to Rs 60,800 per candy.

On Wednesday, the arrival of Kapas in the state's mandis totaled 7,000 bales, with each bale weighing 170 kg, representing an increase from the 5,000 bales that arrived on the previous trading day.



(CommoditiesControl Bureau; +91-9820130172)