OfBusiness Cotton Dailies| 8th July 2023

Price

• Cotton yarn prices in southern India, specifically Mumbai and Tiruppur, have remained stable.
• Discounts are being offered for bulk orders, but mills are reluctant to reduce prices.
• Cotton prices were quoted at different rates in various regions, ranging from Rs 6,800 to 7,200 per quintal in Punjab and Haryana, and Rs 6,900 to 7,300 per quintal in upper Rajasthan.
• Spot delivery rates for cotton in Punjab, Haryana, and Rajasthan varied between Rs 5,800 to 5,900 per head and Rs 5,925 to Rs 6,050 per head.

Demand and Supply

• Demand for cotton yarn is weak in southern India.
• The weaving industry is adopting a cautious approach.
• Demand from consumer industries and exporters has cooled down.
• The weaving industry in Tiruppur may remain cautious in purchasing raw materials until there is clear indication of improved demand from the retail sector.
• In Gujarat, cotton prices fell due to bearish signals from ICE cotton and low demand.
  Spinning mills have shown little interest in new purchases of cotton.
• Cotton arrival in Gujarat is within 10,000 bales, with a nationwide estimate of 30,000-32,000 bales.

News

• Discounts are being offered by mills and stockists for larger quantity orders.
• Cotton prices fell in Gujarat due to bearish signals from ICE cotton and low demand.

OFB’s Opinion

• It might be beneficial for mills in Mumbai to consider adjusting prices to stimulate demand and maintain competitiveness in the market.
• The weaving industry could closely monitor the retail sector and wait for positive signals of increased demand before making significant purchasing decisions.