Ahmedabad, October 5 (CommoditiesControl): The cotton market in Gujarat continues to experience a downward trend, with prices dropping by Rs 350-400 per candy compared to yesterday. Traders attribute this decline to sluggish purchasing activity by spinning mills, which is largely influenced by a recession in the global market stemming from various geopolitical issues, including tensions in Israel, Iran, and Lebanon.
The ongoing increase in Kapas arrivals, coupled with high moisture content, has led ginning factories to approach purchases cautiously. Despite the current downturn, some traders express optimism for a future price recovery. They note that after a decline in Kapas sowing in India, there are also forecasts of decreased cotton production in both the United States and Pakistan.
A report from the Pakistan Cotton Ginners Association highlights a significant reduction in cotton arrivals, with only 20.39 lakh bales reported by September 30—down 60% from 50.25 lakh bales during the same period last year. Additionally, the number of operational ginning mills in Pakistan's Punjab has dropped from 358 last year to just 171 currently. These factors may lend support to the market in the near future if production continues to wane.
Current Cotton Prices in Gujarat
- 29mm Cotton: Rs 57,000 - Rs 57,500 per candy, each candy weighing 356 kg.
- 28.5mm Cotton: Rs 56,300 - Rs 56,800 per candy
- V 797 Cotton: Rs 40,500 - Rs 41,000 per candy
- Average Kapas Price: Rs 1,400 - Rs 1,650 per maund, each maund weighing 20 kg.
Today's cotton arrivals in Gujarat totaled 5,000 bales, with bale weighing 170 kg.
(By CommoditiesControl Bureau; +91-9820130172)