New Delhi, March 27 (Commodities Control): Cotton prices witnessed a notable increase on Wednesday in the markets of North Indian states including Punjab, Haryana, and Rajasthan, driven by sustained demand from spinning mills. Meanwhile, the daily arrival of Kapas in these states witnessed a decrease.
Continued demand from spinning mills has been a driving force behind the rise in cotton prices in these regions. Despite a decline in daily arrivals, spinning mills have shown consistent interest in procuring cotton, leading to the upward movement in prices.
On Tuesday, there was an upward trend in ICE cotton futures prices. The May-24 futures contract rose by 1.39 cents to 93.41 cents, while the July-24 futures contract increased by 1.31 cents to 93.86 cents. Additionally, the December-24 futures contract saw an increase of 0.29 cents to 84.30 cents. However, cotton prices opened weak in electronic trading on ICE today.
Traders attribute the increase in cotton prices to a rise in purchases from spinning mills, influenced by a three-point increase in cotton prices in the foreign market on Tuesday. Moreover, cotton exports from the domestic market appear to be profitable, and spinning mills in these states are facing a shortage of cotton stocks. Consequently, ginners are refraining from selling cotton at reduced prices, further boosting demand from spinning mills, which is expected to increase in April.
However, there was a declining trend observed in cotton prices in the domestic futures market today. In the April-24 futures contract on NCDEX, Kapas prices weakened by Rs 2.5 to Rs 1,537 per 20 kg. Meanwhile, cotton prices in the May-24 futures contract on MCX rose by Rs 320 to Rs 62,200 per candy during this period.
According to the Cotton Corporation of India (CCI), a total of 239.28 lakh bales of cotton have arrived in the markets across the country in the current crop season 2023-24 (October-September), with 32.81 lakh bales purchased by CCI at the minimum support price. As of March 26, the corporation holds 29.11 lakh bales in stock.
In the producer mandis of Punjab, Haryana, and Upper Rajasthan, Kapas prices ranged from Rs 6,600 to Rs 7,200 per quintal, while cottonseed prices varied from Rs 2,250 to Rs 2,550 per quintal.
Spot delivery prices for cotton in various regions were reported as follows:
- Punjab: Rs 6,000 to Rs 6,050 per maund (Rs 57,100 to Rs 57,600 per candy)
- Haryana: Rs 5,970 to Rs 6,025 per maund (Rs 56,800 to Rs 57,300 per candy)
- Upper Rajasthan: Rs 5,525 to Rs 6,175 per maund (Rs 52,600 to Rs 58,700 per candy)
- Pilani, Rajasthan: Rs 5,525 to Rs 6,175 per maund
- Lower Rajasthan: Rs 57,200 to Rs 59,500 per candy
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(CommoditiesControl Bureau; +91-9820130172)
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