Gujarat''s Cotton Market Faces Decline Amid Global Slowdown

Ahmedabad, April 5, 2024 (Commodities Control): The cotton market in Gujarat witnessed a decline today, with prices dropping by Rs 100-200 per candy. This downturn is attributed to a bearish trend triggered by the recent slump in New York cotton futures and a slowdown in the export of American cotton. Kapas prices followed suit, decreasing by Rs 15-20 per 20 kg amid the weakening global cues.

New York futures, which have been on a downward spiral for the last three sessions, plummeted below the 90 cents mark, touching levels within 88 cents. This decline was further compounded by lackluster export reports from the American cotton market, influencing market sentiments worldwide, including in India.

Local traders have observed a notable dip in cotton prices, prompting multinational companies to offload their cotton stocks at reduced prices. Over the past week, the price of cotton candy has been slashed by Rs 2000, moving from around Rs 63000 per candy to the current rate of approximately Rs 61250 per candy. This adjustment in pricing strategy has led to a slowdown in cotton sales within the state.

Anandbhai Popat, a prominent broker from Rajkot, highlighted the impact of New York cotton futures on the Indian market. He pointed out that while New York futures have seen a significant drop from 102 cents to within 88 cents, resulting in a price fall of around Rs 9000-10000, the Indian market has experienced a comparatively modest decline of Rs 1000-1500 per candy.

Current market rates in Gujarat stand at Rs 60200-60800 per candy for 29mm cotton and Rs 59700-60000 per candy for 28.5mm cotton. The price for V 797 variety is quoted at Rs 40000-40200 per candy. The average Kapas price is recorded at Rs 1350-1560 per maund (with one maund equaling 20 kg). Today's cotton arrivals in the state amounted to around 20,000 bales (one bale equals 170 kg).

The ICE cotton futures market has seen a decline for the third consecutive session, with May cotton futures dropping by 1.84 cents, or 2.07%, to 87.14 cents, marking the lowest point since February 7.




(CommoditiesControl Bureau; +91-9820130172)