Cotton Prices Drop Across North India Amid Spinning Mills'' Weak Demand

New Delhi, April 15 (Commodities Control): Cotton prices have declined for the fifth consecutive trading day in key markets across the North Indian states of Punjab, Haryana, and Rajasthan, as spinning mills demonstrate reduced demand. Concurrently, the number of daily kapas arrivals in these regions saw a slight decrease, signaling a potential downtrend in supply.

Moreover, ICE cotton futures experienced a drop last Friday, with the May-24 futures contract losing 0.75 cents to close at 82.62 cents per pound. The July-24 and December-24 contracts also witnessed declines. Despite a weak global trend influencing local markets negatively, ICE cotton prices saw a brief rally in early electronic trading today.

Traders report that last week saw a consistent drop in global cotton prices, maing exports from the domestic market less profitable. This downturn, coupled with increased sales by multinational companies within the domestic market, has contributed to the continued decline in cotton prices for the fifth consecutive trading day across the North Indian states.

This scenario is coupled with an almost depleted stock of Kapas in the key northern states, where the quality of incoming goods has also reportedly deteriorated. Despite these local fluctuations, the future trend of domestic cotton prices is expected to depend largely on global market trends. Concurrently, Kapas and cottonseed prices remained stable in these states.

Today's arrival figures stood at 5,000 bales of 170 kg each, a slight reduction from the 5,200 bales reported the previous working day.

Kapas prices were quoted between Rs 6,600 and Rs 6,900 per quintal in Punjab and Haryana, while prices in Upper Rajasthan hovered between Rs 6,700 and Rs 7,000 per quintal.

Cottonseed prices were similarly varied, with Punjab and Haryana quoting Rs 2,200 to Rs 2,450 per quintal, and Upper Rajasthan at Rs 2,300 to Rs 2,600 per quintal.

The NCDEX also reflected this downward trend today with April-24 futures for Kapas declined by Rs 7.5 to Rs 1,496 per 20 kg.

Spot delivery prices for cotton:
- In Punjab, prices ranged from Rs 5,825 to Rs 5,850 per maund (approximately Rs 55,400 to Rs 55,600 per candy).
- Haryana reported prices between Rs 5,725 to Rs 5,825 per maund (around Rs 54,400 to Rs 55,400 per candy).
- Upper Rajasthan showed a wider range from Rs 5,425 to Rs 6,025 per maund (translating to Rs 51,600 to Rs 57,400 per candy).
- Prices in Lower Rajasthan saw a slight increase, reported at Rs 57,400 to Rs 58,200 per candy.



(CommoditiesControl Bureau; +91-9820130172)