OfBusiness Cotton Dailies

8^th May’23

Price

• North Indian cotton yarn prices dropped on lower demand from weavers.
• Delhi and Ludhiana experienced a decrease in cotton yarn prices, while recycled PC yarn prices in Panipat remained unchanged.
• Cotton yarn prices in Delhi dropped by ₹2-4 per kg with 30 and 40 count combed yarn trading at ₹270-280 and ₹300-305 per kg (GST extra) respectively. Meanwhile, 30 and 40 count carded yarn traded at ₹248-255 and ₹280-285 per kg respectively.
• Cotton yarn prices in Ludhiana fell by ₹2-3 per kg compared to the previous prices.

Demand and Supply

• Spinning mills are contemplating partial production shutdowns to avoid stock accumulation caused by decreased demand from the weaving industry and poor export demand.
• The market for recycled yarn in Panipat faced weak demand.
• Exports rose by 20% from the previous week with China and Vietnam being the primary destinations.

News

• During the next 24 hours, light to moderate rain and snowfall very likely over Gilgit Baltistan, Muzaffarabad, Ladakh, Jammu Kashmir, Himachal Pradesh and Arunachal Pradesh.
• 3.5 Lakh hectares of cotton, a crucial summer (Kharif) crop, have been sown in Haryana thus far, with the government aiming to sow cotton in 7 Lakh hectares this season.
• As per government data, cotton was cultivated on 5.74 Lakh hectares in Haryana last season. This year, cotton has been sown on 30,000 hectares in Punjab, with the government targeting 3 lakh hectares as compared to 2.48 lakh hectares in the previous year.
• Recent rainfall is favorable as it can help avoid the issue of “burning” caused by high temperatures, which led to significant losses in cotton acreage last year.
• ICE cotton prices rose due to a 19% weekly increase and 65% prior 4-week average increase in net sales for the 2022/2023 year.
• India’s cotton production increased to 33.72 million bales but experts have projected exports to be within 20 lakh bales during 2022-23.
• ICAC has lowered its global price outlook for cotton, with a projected average price range of 96.1 cents to 111.3 cents per pound.

OFB’s Opinion

• The yarn demand from the weaving industry seems to be very poor. The spinners seems to be not willing to reduce prices due to higher production costs. The costlier raw materials, such as rugs and old clothes, did not ease due to limited supply. The recycled yarn and raw material prices looked stable.