Expectations mixed for South Indian cotton yarn; partial trading noted

According to market experts, cotton yarn demand will be influenced by the broader global market situation. Another factor to consider is cotton arrivals, which may increase in the coming days and could exert downward pressure on prices if the Cotton Corporation of India (CCI) does not commence procurement immediately.

In Mumbai, the market was nearly inactive, with only direct transactions between buyers and sellers taking place. Traders indicated that cotton yarn demand could improve once normal trading resumes in the next two to three days. Buyers will need to purchase cotton yarn for the production of summer garments, but seasonal demand has already been delayed due to buyer hesitancy.

In Mumbai, 60 carded yarn of warp and weft varieties were sold before Diwali at ₹1,410-1,450 (approximately $16.76-$17.24) and ₹1,365-1,410 per 5 kg (approximately $16.23-$16.76) (excluding GST), respectively. Other prices include 60 combed warp at ₹324-332 (approximately $3.85-$3.95) per kg, 80 carded weft at ₹1,380-1,425 (approximately $16.41-$16.94) per 4.5 kg, 44/46 carded warp at ₹254-262 (approximately $3.02-$3.11) per kg, 40/41 carded warp at ₹250-260 (approximately $2.97-$3.09) per kg and 40/41 combed warp at ₹279-284 (approximately $3.32-3.38) per kg, according to trade sources.

The Tiruppur market was partially open and recorded limited trading activity. Cotton yarn prices remained stable. A trader from the region noted that there is uncertainty regarding demand following the holiday period. Cotton yarn prices are expected to be influenced by the movement of the natural fibre amidst increasing arrivals. Broader market sentiment will also play a role, as many global markets remain cautious ahead of the outcome of the US presidential elections. Cotton yarn prices could see a boost if geopolitical tensions ease after the election.

In Tiruppur, knitting cotton yarn prices were noted as 30 count combed cotton yarn at ₹266-274 (approximately $3.16-3.26) per kg (excluding GST), 34 count combed cotton yarn at ₹275-282 (approximately $3.27-3.35) per kg, 40 count combed cotton yarn at ₹290-296 (approximately $3.45-3.52) per kg, 30 count carded cotton yarn at ₹242-249 (approximately $2.88-2.96) per kg, 34 count carded cotton yarn at ₹247-251 (approximately $2.94-2.98) per kg and 40 count carded cotton yarn at ₹252-257 (approximately $3.00-3.06) per kg.

In Gujarat, there was no trading activity as most ginners and mandi yards were closed. Trading is expected to resume tomorrow. Traders indicated that cotton arrivals may increase in the next few days. However, CCI may delay its purchase of cotton at the minimum support price (MSP) as its officials are still in the preparatory phase. Reports suggest that CCI is holding off on purchasing seed cotton (kapas) due to high moisture levels. The agency is mandated to purchase seed cotton with a maximum moisture content of 13-14 per cent, while current arrivals are reported to have moisture levels of 20-22 per cent. If CCI delays procurement, cotton prices could come under pressure due to increased arrivals.

Before Diwali, the benchmark Shankar-6 cotton was priced between ₹54,000-54,500 (approximately $641.95-$647.89) per candy of 356 kg, while southern mills were willing to buy cotton at ₹55,000-55,500 (approximately $653.84-$659.78) per candy. Seed cotton (kapas) was traded at around ₹7,400-7,500 (approximately $87.97-$89.16) per quintal.

Disclaimer: The prices in this article are based on market sources and hence, readers are recommended to do their own research before making any decision. The publisher and their affiliates are not liable for any inaccuracies or actions taken based on this information.

ALCHEMPro News Desk (KUL)