OfBusiness Cotton Dailies | 19th July 2023

Price

• Cotton prices in North India have increased by Rs 25-50 per mound. In Punjab, prices are currently ranging between 5,850 and 5,950, in Haryana between 5,650 and 5,750, and in Rajasthan between 5,950 and 6,075.
• Cotton prices in North Indian states of Punjab, Haryana, and Rajasthan increased for the second consecutive day due to sustained demand from spinning mills.
• Cotton yarn prices remained steady in south India, particularly in Mumbai and Tiruppur markets.
• Cotton prices showed a declining trend in the domestic futures market today. On the NCDEX, cotton prices declined by Re one to Rs 1,525 per 20 kg in April-24 futures contract.

Demand and Supply

• Today, 100 bales of cotton arrived in the producer mandis of the Rajasthan, while the same number of bales arrived in the previous trading day.
• The production halt by spinning mills in Tamil Nadu has boosted market sentiment in south India.
• Increased demand for cotton yarn has been observed in Mumbai and Tiruppur markets.
• The weaving industry is eager to secure more raw materials, leading to an uptick in cotton yarn trade in Tiruppur.
• Cotton arrival in Gujarat was approximately 8,000 bales, with the all-India arrival estimated at 30,000-32,000 bales.

News

• Heavy rainfalls in north India and inadequate rain in the central cotton-producing region of Gujarat are impacting the domestic crop.
• Cotton prices in Gujarat have observed an upward trend due to concerns about crop yield both domestically and in the US.
• Flood damage and heavy rainfalls may require reseeding in some regions.

OFB’s Opinion

• It may be worth considering that despite the current stable prices, there is a possibility of prices rising in the future due to the increased demand and upcoming festival requirements.
• Traders in Mumbai suggest keeping an eye on potential price increases in yarn in the near future, despite the current stability.