OfBusiness Cotton Dailies| 7th July 2023

Price

• Cotton prices in the mandis of Punjab, Haryana, and Rajasthan in northern India softened on Friday due to weak demand from spinning mills.
• The prices of kapas in the mandis of Punjab and Haryana ranged from 6,800 to 7,200 rupees per quintal, while in upper Rajasthan, the prices ranged from 6,900 to 7,300 rupees per quintal.
• The prices of cotton futures contracts showed a consecutive decline on Thursday. The December-23 contract weakened by 0.35 cents to settle at 79.88 cents, while the March-24 contract weakened by 0.26 cents to settle at 79.79 cents.

Demand and Supply

• The arrival of cotton in the mandis of Punjab, Haryana, and Rajasthan increased to 800 bales compared to the previous trading day when it was the same.
• The demand for cotton yarn from Ludhiana, Panipat, and Delhi’s textile manufacturers has weakened compared to normal, and there is also a decline in its export.

News

• The weather conditions in the cotton-producing regions of northern India are unfavorable, affecting the arrival of cotton in the domestic market.
• The prices of cotton in the international market witnessed consecutive declines on Thursday, leading to a decrease in domestic market prices due to weak purchasing by spinning mills.
• India, the world’s largest cotton producer, is facing a crisis as cotton production is expected to reach a 14-year low in 2022-23 due to declining yields.

OFB’s Opinion

• It is suggested that the cotton prices in the domestic market are not anticipated to experience a significant increase at this time. However, it is worth considering that the arrival of cotton in Northern states is expected to commence by the end of the current month.