New Delhi, April 5, 2024 (Commodities Control): Cotton prices experienced a downturn for the second consecutive day in the markets across Maharashtra on Friday, with weak procurement activities by spinning mills contributing to the price softening. The daily arrival of Kapas in the state’s mandis remained consistent.
Market observers note that the spinning mills in Maharashtra are currently purchasing cotton in limited quantities, aligning their buying with immediate needs. This cautious approach has been prompted by a recent downturn in global cotton prices, which has subsequently narrowed the export margins for these mills. The decrease in cotton prices has also led to a reduced demand for yarn, putting pressure on the profitability of ginning mills at the current price levels. Despite these challenges, traders believe that the market is unlikely to see a significant one-sided drop in prices. On this day, Kapas prices in the state saw a decrease of Rs 100, while cottonseed prices held steady.
In the domestic futures market, a declining trend was observed in cotton prices. The April-24 futures contract for Kapas on the NCDEX decreased by Rs 3.5, settling at Rs 1,515.5 per 20 kg. Meanwhile, the May-24 futures contract for cotton on the MCX witnessed a fall of Rs 360, with prices adjusting to Rs 61,500 per candy.
The state reported the arrival of 25,000 bales of Kapas in its producer mandis today, with each bale weighing 170 kg, maintaining the same level of arrivals as the previous trading day.
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(CommoditiesControl Bureau; +91-9820130172)
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