Limited Demand Halts Cotton Prices in Andhra and Telangana

New Delhi, May 8 (Commodities Control): Cotton prices in the markets of Andhra Pradesh and Telangana remained stable for the fourth consecutive trading day on Wednesday, owing to limited demand from spinning mills, while daily arrivals of Kapas in these states remained steady.

Clear weather prevailed in the Kapas growing regions of both Andhra Pradesh and Telangana. Traders observed weaker-than-normal local and export demand for yarn, coupled with limited export deals for cotton.

Consequently, spinning mills in these states are procuring cotton only in limited quantities, thereby maintaining stability in spot market prices. Additionally, the Cotton Corporation of India (CCI) is adjusting its selling prices in response to a weak customer base, further mitigating the possibility of significant price hikes in the spot market.

In the domestic futures market, cotton prices experienced a declining trend today. The April-25 futures contract for Kapas on NCDEX weakened by Rs 7, settling at Rs 1,568.5 per 20 kg. Similarly, cotton prices in the May-24 futures contract on MCX saw a decline of Rs 220, reaching Rs 57,300 per candy.

The arrival of cotton in these states amounted to 2,500 bales today, with Andhra Pradesh witnessing 2,000 bales and Telangana 500 bales. This level of daily arrivals mirrored the previous trading day's figures.







(By CommoditiesControl Bureau: +91-9820130172)