Cotton Market Downturn Hits North Indian States Amid Spinning Mills Weak Demand

New Delhi, March 23 (Commodities Control): The cotton market in the northern Indian states of Punjab, Haryana, and Rajasthan is experiencing a downturn as weak demand from spinning mills triggers a decline in prices. Furthermore, daily arrivals of Kapas in the mandis of these states have decreased.

There was a mixed trend observed in ICE cotton futures prices on Friday. The May-24 futures contract weakened by 0.68 cents to 91.53 cents, while the July-24 futures contract decreased by 0.41 cents to 91.85 cents. However, the December-24 futures contract saw a slight increase of 0.03 cents to 83.95 cents.

Traders attribute the decline in cotton prices to a one-month low in the world market, exerting pressure on domestic prices. Festive holidays are also impacting demand for cotton, leading mills to purchase only as per immediate requirement.

Consequently, there may be limited fluctuations in prices, despite the arrival of light-quality Kapas in these states. Additionally, the outstanding stock of cotton with mills is reported to be less. Alongside Kapas, cottonseed prices have stabilized in these states.

In terms of arrivals, 7,500 bales of Kapas, with each bale weighing 170 kg, were recorded in the producer markets of these states, compared to 8,500 bales on the previous working day.

In Punjab and Haryana, Kapas prices ranged from Rs 6,600 to Rs 7,200 per quintal, while in Upper Rajasthan, prices remained at Rs 6,700 to Rs 7,300 per quintal. Cottonseed prices were quoted at Rs 2,300 to Rs 2,550 per quintal in Punjab and Haryana, and Rs 2,400 to Rs 2,600 per quintal in Upper Rajasthan.

Spot delivery prices for cotton in Punjab were quoted at Rs 5,975 to Rs 6,000 per maund, equivalent to Rs 56,900 to Rs 57,200 per candy. In Haryana, spot delivery prices ranged from Rs 5,900 to Rs 5,925 per maund, or Rs 56,200 to Rs 56,400 per candy.

In Upper Rajasthan, cotton spot delivery prices varied from Rs 5,400 to Rs 6,125 per maund, i.e., Rs 51,400 to Rs 58,300 per candy. In Pilani, Rajasthan, spot delivery prices ranged from Rs 5,400 to Rs 6,125 per maund, while in Lower Rajasthan, prices ranged from Rs 57,000 to Rs 59,300 per candy.




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