Cotton Prices Up in North Indian States Amid Improved Demand; Daily Arrivals Dip

New Delhi, April 16 (Commodities Control): Cotton prices experienced an upward trend in the markets of North Indian states including Punjab, Haryana, and Rajasthan on Tuesday, breaking a streak of five consecutive trading days of decline. This rise can be attributed to a noticeable improvement in demand from spinning mills, coupled with a reduction in daily arrivals of Kapas in these states.

A positive trend was observed in the prices of ICE cotton futures on Monday, with the May-24 futures contract witnessing a rise of 0.31 cents to 82.93 cents. Similarly, the July-24 futures contract increased by 0.56 cents to 85.15 cents, while the December-24 futures contract surged by 0.46 cents to 80.57 cents. However, today's electronic trading of ICE cotton displayed a mixed trend in cotton prices.

Traders attribute the increase in domestic cotton prices to a rise in international cotton prices on Monday. This uptick in global prices has influenced domestic markets, despite limited outstanding stock of Kapas and ginneries hesitating to purchase at current prices due to holding higher-priced Kapas stocks. However, cotton prices in North Indian states will depend upon world market fluctuations. Kapas prices remained stable in these states, while cottonseed prices increased.

The Cotton Corporation of India (CCI) set selling prices for 27mm and 28mm cotton in Bathinda, Punjab at Rs 57,100 to Rs 57,400 per candy, and in Sirsa, Haryana, at Rs 56,800 to Rs 57,100 per candy for April 15.

Arrivals of Kapas in producer markets of these states amounted to 4,400 bales (each bale weighing 170 kg), down from 5,000 bales recorded on the previous working day.

In Punjab and Haryana, Kapas prices ranged from Rs 6,600 to Rs 6,900 per quintal, while in Upper Rajasthan, prices remained at Rs 6,700 to Rs 7,000 per quintal. Cottonseed prices stood at Rs 2,250 to Rs 2,500 per quintal in Punjab and Haryana, and Rs 2,350 to Rs 2,700 per quintal in Upper Rajasthan.

However, domestic futures market saw a declining trend today, with Kapas prices in April-24 futures contract on NCDEX weakening by Rs 5 to Rs 1,482 per 20 kg.

Spot delivery prices for cotton in Punjab ranged from Rs 5,850 to Rs 5,875 per maund (equivalent to Rs 55,600 to Rs 55,900 per candy), while in Haryana, prices were quoted at Rs 5,775 to Rs 5,875 per maund (equivalent to Rs 54,900 to Rs 55,900 per candy).

In Upper Rajasthan, spot delivery prices ranged from Rs 5,525 to Rs 6,025 per maund (equivalent to Rs 52,600 to Rs 57,300 per candy).

In Pilani, Rajasthan, spot delivery prices for cotton ranged from Rs 5,525 to Rs 6,025 per maund, while in Lower Rajasthan, prices rose from Rs 58,000 to Rs 58,200 per candy.



(CommoditiesControl Bureau; +91-9820130172)