Cotton Buying Slow in Gujarat Amid Festival Season, Prices Remain Stable

Ahmedabad, April 9 (CommoditiesControl): In Gujarat's cotton market, the pace of purchases has slowed, influenced by the ongoing demand from textile mills which are buying at lower prices. This trend is noted amidst the current festival season, which typically sees a boost in demand for readymade garments. Despite this, cotton prices in Gujarat remained stable today, reflecting a cautious market sentiment.

The price for 29mm cotton in the state was reported at Rs 60,300 to Rs 60,500 per candy (1 candy = 356 kg), while 28.5 mm cotton was priced between Rs 59,500 and Rs 59,800 per candy. The price for V 797 cotton was noted at Rs 39,800 to Rs 40,000 per candy. Kapas averaged at Rs 1,350 to Rs 1,560 per maund, each weighing 20 kg. Today, around 17,000 bales of cotton arrived in the state, with each bale weighing 170 kg.

The Cotton Association of India reports that a total of 252.72 lakh bales of cotton have been received so far, with Gujarat contributing 68.48 lakh bales to this total.

The foreign cotton market's slowdown has led multinational companies to adjust their pricing strategies. Influenced by continuous price drops in New York and China, these companies are now offering cotton at reduced prices. Major multinational firms have decreased their cotton prices by Rs 1,700 to Rs 1,800 per candy in Gujarat during the first week of April. The price for July delivery, initially set at Rs 64,000 per candy at the beginning of April, has been adjusted to Rs 62,200. Furthermore, the price for delivery from July to August, originally Rs 64,400, has been revised to Rs 62,700 per candy.

In the ICE cotton futures, a mixed performance was observed on Monday, following a drop to their lowest level in over two months, spurred by a weakening US dollar. Market participants are now looking forward to the US Department of Agriculture's (USDA) monthly supply and demand report due later this week. May cotton futures dipped to 86.12 cents, the lowest since February 2, but eventually closed with a gain of 0.4 cents at 86.65 cents.




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