Cotton falls for 2nd straight day in North India as buying from mills remains subdued

NEW DELHI, May 28 (Commoditiescontrol) - Cotton prices quoted lower in the mandis of north India for the second consecutive day on Saturday amid weak demand from spinning mills, while daily arrivals were reported lower.

Globally, ICE Cotton futures traded down for the second straight day on Friday, with July contract dropped by 119 points to close at 139.42 cents/pound, while December contract edged lower by 138 points to 122.95 cents/pound.

The weather has cleared up in most areas of North India. Cotton prices fell today in the mandis of these states today amid weak buying from mills as the commodity continued to rule weak in the global market on Friday. The spinning mills of North Indian states are currently procuring cotton only as per requirement as they are not getting parity due to weak local and export demand in yarn. Therefore, further softening in cotton prices is expected. Although the balance stock of cotton with the mills of these states is less, and the arrival of the new crop will start only in September-October, so there is no possibility of a big decline right now.

The daily arrival of cotton in the mandis of the states of North India stood at 500 bales, down from 600 bales a day before. Out of the total arrivals, Punjab received 0 bales, Haryana 300 bales and Upper Rajasthan 200 bales.

The prices of cotton were quoted at Rs 11,000 to Rs 12,000 per quintal in the mandis of Punjab and Haryana line, while offered at Rs 11,000 to Rs 12,000 per quintal in Upper Rajasthan line. Cottonseed price was quoted at Rs 3,750 to 4,150 in Punjab and Haryana line and Rs 3,850 to Rs 4,200 per quintal in Upper Rajasthan line.

In Punjab, cotton spot delivery rates were quoted from Rs 10,000 to Rs 10,200 per maund, i.e. Rs 98,000 to Rs 98,200 in candy.

In Haryana, cotton prices were quoted at Rs 9,700 to Rs 10,000 per maund for spot delivery, i.e. Rs 96,000 to Rs 98,800 in candy.

In Upper Rajasthan, cotton prices were quoted at Rs 10,100 to Rs 10,200 per maund for spot delivery, i.e. Rs 98,100 to Rs 98,200 in candy.

In Rajasthan's Pilani, the price of cotton was quoted at Rs 9,500 to Rs 9,800 per maund for spot delivery.

In Lower Rajasthan, cotton traded at Rs 97,000 to Rs 99,000 per candy for spot delivery.

(By Commoditiescontrol Bureau: +91-22-40015505)