Cotton Prices Dip in North India Amid Sluggish Demand and Increased Supply

New Delhi, April 4 (Commodities Control): The cotton market in the northern states of India, including Punjab, Haryana, and Rajasthan, witnessed a decline for the second consecutive day on Thursday due to reduced demand from spinning mills, even as daily arrivals of Kapas saw an improvement.

The price dip follows a downward trend in ICE cotton futures, which decreased for the second day on Wednesday. The May-24 futures contract saw a decrease of 1.83 cents, closing at 88.98 cents, while the July-24 contract dropped by 1.53 cents to 90.18 cents. The December-24 contract saw a modest decline of 0.20 cents to 84.10 cents. Despite this, cotton prices exhibited a mixed trend in Thursday's electronic trading session on ICE.

Market analysts point to a global downturn in cotton prices, which dropped for a second day on Wednesday, significantly impacting domestic purchasing trends among spinning mills. However, given the low inventory levels at spinning mills in these states and ginners' reluctance to sell at reduced rates, a significant drop in cotton prices seems unlikely. Kapas stocks among farmers are reportedly depleted, leading to stable Kapas prices, although cottonseed prices experienced a dip.

Today, the market saw an arrival of 4,600 bales of Kapas, each weighing 170 kg, marking an increase from Wednesday's 4,400 bales. Kapas prices ranged between Rs 6,600 to Rs 7,000 per quintal in Punjab and Haryana, with Upper Rajasthan reporting slightly higher rates of Rs 6,700 to Rs 7,100 per quintal. Cottonseed prices varied from Rs 2,250 to Rs 2,600 per quintal in Punjab and Haryana, and Rs 2,350 to Rs 2,750 in Upper Rajasthan.

The domestic futures market also reflected a downtrend, with the April-24 futures contract on the NCDEX weakening by Rs 10 to Rs 1,526 per 20 kg. Spot delivery prices in Punjab were quoted between Rs 6,000 to Rs 6,050 per maund, equivalent to Rs 57,200 to Rs 57,600 per candy. Haryana saw prices ranging from Rs 5,900 to Rs 6,000 per maund, i.e., Rs 56,200 to Rs 57,200 per candy.

In Upper Rajasthan, cotton prices for spot delivery were quoted at Rs 5,500 to Rs 6,150 per maund, i.e., Rs 52,400 to Rs 58,600 per candy. In Pilani, Rajasthan, cotton prices for spot delivery ranged from Rs 5,500 to Rs 6,150 per maund. In Lower Rajasthan, cotton prices for spot delivery rose from Rs 59,000 to Rs 59,300 per candy.




(CommoditiesControl Bureau; +91-9820130172)