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Cotton Prices Decline in North India as Spinning Mills Limit Purchases at Higher Rates

10 May 2024 12:37 pm
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New Delhi, May 10 (Commodities Control): Cotton prices witnessed a sluggish trend on Friday across the markets of North Indian states, including Punjab, Haryana, and Rajasthan. This dip in prices was attributed to reduced purchases from spinning mills, which hesitated to procure cotton at the increased prices. However, the daily arrivals of Kapas in these states remained stable.

The International Cotton Exchange (ICE) had anticipated a decline in cotton futures prices on Thursday, a prediction that materialized on Friday. In the July-24 futures contract, prices weakened by 1.46 cents to 78.6 cents, while in the December-24 futures contract, they decreased by 1.24 cents to 78.46 cents. The March-25 futures contract also saw a decline, dropping by 1.18 cents to 78.01 cents. This trend continued as cotton prices opened weak in electronic trading on ICE.

Traders cited fluctuating trends in foreign cotton markets throughout the week, contributing to uncertainty in domestic trading. The apprehension among mills regarding future price movements led to cautious buying behavior. Mills that had secured forward deals for yarn were the primary purchasers, while those with ample yarn stock abstained from significant cotton acquisitions due to weak local and export demand. Consequently, the direction of cotton prices remained contingent on ICE cotton futures.

Cotton Corporation India (CCI) sold 10,684 bales of cotton (1 bale equals 170 kg) on May 8, bringing the total sales for the season to 6.65 bales. However, the Corporation still holds an outstanding stock of 26.30 lakh bales as of May 8. Telangana and Andhra Pradesh contributed the most to the Corporation's total purchase of 32.95 lakh bales since the beginning of the current season on October 1, 2023.

In the producer mandis of Punjab, Haryana, and Rajasthan, Kapas arrivals remained steady at 1,400 bales. Prices ranged from Rs 6,500 to Rs 6,900 per quintal in Punjab and Haryana, while in Upper Rajasthan, they stood between Rs 6,600 to Rs 7,000 per quintal.

Additionally, cottonseed prices were quoted at Rs 2,250 to Rs 2,700 per quintal in Punjab and Haryana and Rs 2,350 to Rs 2,900 per quintal in Upper Rajasthan.

Domestic futures markets exhibited a mixed trend, with Kapas prices in April-25 futures contract on NCDEX witnessing a decline of Rs 3.5 to Rs 1,559 per 20 kg. Conversely, cotton prices in May-24 futures contract on MCX rose by Rs 180 to Rs 57,600 per candy.

Spot delivery prices for cotton varied across regions. In Punjab, prices ranged from Rs 5,725 to Rs 5,775 per maund (Rs 54,500 to Rs 55,000 per candy), while in Haryana, they stood at Rs 5,675 to Rs 5,700 per maund (Rs 54,100 to Rs 54,300 per candy).

In Upper Rajasthan, prices ranged from Rs 5,425 to Rs 5,925 per maund (Rs 51,700 to Rs 56,200 per candy), while in Pilani, Rajasthan, they remained stable at Rs 5,425 to Rs 5,925 per maund. Lower Rajasthan witnessed a slight increase, with prices rising from Rs 57,200 to Rs 57,400 per candy.




(By CommoditiesControl Bureau: +91-9820130172)


       
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