Cotton Prices See Uptick in North Indian States Amid Increased Mill Purchases

New Delhi, April 8 (Commodities Control): Cotton prices experienced a noticeable increase in the mandis of North Indian states including Punjab, Haryana, and Rajasthan on Monday, due to increased demand from spinning mills. This surge comes amidst an improvement in the daily arrivals of Kapas across these states.

Despite a consistent downtrend in ICE cotton futures over four consecutive days, with the May-24 futures contract dropping by 0.89 cents to 86.25 cents, and similar dips observed in July-24 and December-24 futures contracts, prices in electronic trading on ICE saw a rebound today.

Market participants note a three-point rise in cotton prices in electronic trading on ICE, attributed largely to increased purchases by spinning mills in the region. The stock of cotton at spinning mills in North India is reportedly running low, with ginning mills hesitant to sell at reduced prices, citing unprofitability. Moreover, the quality of the currently arriving Kapas is considered inferior, suggesting potential further price adjustments if mills purchases persist. Consequently, Kapas and cottonseed prices have remained stable in these states.

Today's Kapas arrivals in the producer mandis of these states marked an increase, with 5,000 bales reported, compared to 4,200 bales on the previous trading day. Prices for Kapas ranged between Rs 6,600 to Rs 7,000 per quintal in Punjab and Haryana, and Rs 6,700 to Rs 7,100 per quintal in Upper Rajasthan. Cottonseed was similarly priced at Rs 2,200 to Rs 2,550 per quintal in Punjab and Haryana, and Rs 2,300 to Rs 2,650 in Upper Rajasthan.

Domestic futures markets witnessed a mixed trend in cotton prices today. The April-24 futures contract on NCDEX showed Kapas prices weakening slightly by Rs 1.5 to Rs 1,519 per 20 kg. During this period, the May-24 futures contract on MCX rose by Rs 120 to Rs 61,700 per candy.

Spot delivery prices in Punjab were quoted between Rs 5,975 to Rs 6,000 per maund, translating to Rs 56,800 to Rs 57,100 per candy.

In Haryana, cotton prices for spot delivery quoted at Rs 5,900 to Rs 6,000 per maund, i.e. Rs 56,100 to Rs 57,100 per candy.

In Upper Rajasthan, cotton prices for spot delivery were quoted at Rs 5,500 to Rs 6,125 per maund, i.e. Rs 52,300 to Rs 58,300 per candy.

In Pilani, Rajasthan, cotton prices for spot delivery ranged from Rs 5,500 to Rs 6,125 per maund.

In Lower Rajasthan, cotton prices for spot delivery rose from Rs 59,000 to Rs 59,200 per candy.



(CommoditiesControl Bureau; +91-9820130172)