Cotton Prices Soften in North Indian States Amid Spinning Mills Weak Demand; Arrivals Decline

New Delhi, March 21 (Commoditiescontrol): Cotton prices experienced a softening trend across North Indian states like Punjab, Haryana, and Rajasthan on Thursday, attributed to subdued demand from spinning mills. Meanwhile, a decrease in daily arrivals of Kapas in these mandis.

The weakening trend was also reflected in ICE cotton futures prices on Wednesday, with May-24 contracts dipping by 1.16 cents to 92.18 cents, July-24 contracts decreasing by 1.00 cents to 92.12 cents, and December-24 contracts dropping by 0.20 cents to 83.80 cents. However, electronic trading on ICE saw an opening with higher cotton prices today.

Traders observed a three-point decline in global cotton prices on Wednesday, which consequently dampened purchases from domestic spinning mills. Experts noted that spinning mills in these states are presently procuring cotton only as needed, due to the month-end closure and ongoing festive season, thereby limiting significant fluctuations in prices. Nevertheless, with mills holding relatively low stocks of cotton and anticipated upticks in local demand for cotton yarn, procurement is expected to rise in April. Kapas prices have softened in these regions, while cottonseed prices have stabilized.

The arrival of Kapas in producer markets of these states stood at 8,700 bales, with each bale weighing 170 kg, compared to 9,000 bales on the previous working day.

Kapas prices ranged from Rs 6,600 to Rs 7,200 per quintal in Punjab and Haryana, while in Upper Rajasthan, they were maintained between Rs 6,700 to Rs 7,300 per quintal. Cottonseed prices varied from Rs 2,300 to Rs 2,550 per quintal in Punjab and Haryana and from Rs 2,400 to Rs 2,600 per quintal in Upper Rajasthan.

Domestic futures market also witnessed a decline in cotton prices today, with Kapas prices in April-24 contracts on NCDEX weakening by Rs 0.5 to Rs 1,566 per 20 kg.

Spot delivery prices for cotton in Punjab were quoted at Rs 5,975 to Rs 6,025 per maund (i.e., Rs 56,800 to Rs 57,400 per candy), in Haryana at Rs 5,925 to Rs 6,025 per maund (i.e., Rs 56,400 to Rs 57,400 per candy), and in Upper Rajasthan at Rs 5,475 to Rs 6,125 per maund (i.e., Rs 52,200 to Rs 58,300 per candy).

In Pilani, Rajasthan, spot delivery prices ranged from Rs 5,475 to Rs 6,125 per maund, while in Lower Rajasthan, it increased from Rs 56,800 to Rs 59,600 per candy.



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