Cotton Prices Surge in North Indian States Amid Rising Demand from Spinning Mills

New Delhi, March 29 (Commodities Control): Cotton prices witnessed a significant uptick on Friday across the markets of North Indian states including Punjab, Haryana, and Rajasthan. This surge in prices can be attributed to a notable increase in demand from spinning mills coupled with a rise in daily arrivals of Kapas in these regions.

The ICE cotton futures experienced an upward trajectory on Thursday, reflecting a positive sentiment in the market. In the May-24 futures contract, prices rose by 0.61 cents to reach 91.38 cents, while the July-24 futures contract saw an increase of 0.53 cents to 91.97 cents. Similarly, the December-24 futures contract witnessed a rise of 0.65 cents, reaching 83.99 cents. However, it's worth noting that cotton trading in ICE's electronic trading was closed today due to a holiday.

Traders attribute the improvement in cotton prices to the higher closing observed in the foreign market on Thursday. This uptick in prices is primarily driven by increased purchases from spinning mills in the these states. However, due to the March closing, trading is currently occurring in limited quantities, with only those mills engaging in cotton purchases that have secured future yarn deals.

Moreover, the outstanding stock of cotton with most spinning mills in these states is relatively low, indicating a potential rise in local demand for cotton yarn in the near future. Consequently, traders anticipate further improvements in cotton prices in the coming days. Along with the rise in cotton prices, Kapas prices weakened by Rs 100, while cottonseed prices increased by Rs 50.

The arrival of Kapas in the producer mandis of Punjab, Haryana, and Rajasthan totaled 5,500 bales, with each bale weighing 170 kg. This figure represents a slight increase from the previous working day's arrival of 5,000 bales.

In the mandis of Punjab and Haryana, Kapas prices ranged from Rs 6,600 to Rs 7,000 per quintal, while in Upper Rajasthan, prices stood at Rs 6,700 to Rs 7,100 per quintal. Additionally, cottonseed prices were quoted at Rs 2,250 to Rs 2,500 per quintal in Punjab and Haryana, and Rs 2,350 to Rs 2,600 per quintal in Upper Rajasthan.

Spot delivery prices for cotton varied across different regions. In Punjab, prices ranged from Rs 6,025 to Rs 6,075 per maund (equivalent to Rs 57,300 to Rs 57,800 per candy), while in Haryana, it stood at Rs 5,950 to Rs 6,050 per maund (equivalent to Rs 56,600 to Rs 57,600 per candy).

Meanwhile, in Upper Rajasthan, spot delivery prices ranged from Rs 5,500 to Rs 6,150 per maund (equivalent to Rs 52,400 to Rs 58,500 per candy).

In Pilani, Rajasthan, spot delivery cotton prices were quoted at Rs 5,500 to Rs 6,150 per maund. Conversely, in Lower Rajasthan, prices ranged from Rs 57,000 to Rs 59,200 per candy.



(CommoditiesControl Bureau; +91-9820130172)