New Delhi, April 8 (Commodities Control): Cotton prices found stability in Madhya Pradesh on Monday, primarily due to the reluctance of ginning mills to offload their stock at reduced prices. Meanwhile, an increase in the daily arrivals of Kapas witnessed in the state's mandis.
Market participants point out that the dip in cotton prices observed last week has not been sufficient to incentivize ginning mills to sell, particularly as these mills had previously procured Kapas at higher rates from farmers. This mismatch between purchase and selling prices has led to a stabilization of cotton prices in the spot market. "Ginners are holding back from selling at the current low prices, hoping for a rebound, given their higher procurement costs," said a local trader.
Experts in the field suggest that the demand for cotton yarn within the domestic market is likely to remain robust, especially with the onset of the summer season, traditionally a period of increased cotton yarn consumption. This anticipated demand could potentially drive further improvements in cotton prices. Concurrently, Kapas and cottonseed prices have also shown signs of stability across the state.
In the domestic futures market, a positive trend was noted today. Kapas prices in the April-24 futures contract on NCDEX edged up by Rs 1.5 to Rs 1,522 per 20 kg. Similarly, cotton prices witnessed a notable increase in the May-24 futures contract on MCX, rising by Rs 220 to Rs 61,800 per candy.
Today's Kapas arrivals in Madhya Pradesh's producer markets were reported at 3,500 bales, each bale weighing 170 kg, marking a slight increase from the 3,300 bales recorded on the previous trading day.
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(CommoditiesControl Bureau; +91-9820130172)
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