OfBusiness Cotton Dailies

24^th May’23

Price

• Cotton yarn prices in south India, particularly in Tiruppur and Mumbai, have declined significantly. Discounts offered by mills and traders have contributed to the decrease.
• The prices in the Tiruppur market range from ₹266-272 per kg for 30 count combed cotton yarn to ₹253-260 per kg for 40 count carded cotton yarn, according to Fibre2Fashion’s market insight tool TexPro.
• In Mumbai, prices for 60 count carded cotton yarn of both warp and weft varieties remained stable, while other prices for different counts and types of cotton yarn have experienced a decline.

Demand and Supply

• Major markets in south India, especially Tiruppur and Mumbai, have witnessed a significant drop in demand for cotton yarn.
• The weaving industry’s slower demand has compelled mills to offer higher discounts to attract buyers.
• Poor demand from spinning mills in Gujarat has led to bearish cotton prices and limited buying from the weaving industry.

News

• ICE cotton futures extended losses on Tuesday, pressured by a stronger dollar and improved weather conditions for the natural fiber crop in key growing region of West Texas.
• During the next 24 hours, light to moderate rain with one or two heavy spells is possible over parts of West Bengal, Northeast India and Kerala.
• Traders are worried about the continuous decrease in purchases from the weaving industry, affecting the entire value chain.

OFB’s Opinion

• The market remains nervous despite the anticipation of garment export orders in the coming month. These orders are expected to provide support only in the last week of June and July, leaving the trade sector to suffer from poor demand until then.
• Mills are experiencing losses in the production of cotton yarn due to previously purchased natural fiber at higher prices, and the recent decrease in cotton prices may not alleviate their situation.