South India notices thin trade ahead of Diwali; prices up in Mumbai

Diwali, a major festival in India, will be celebrated on October 31 this year.

Mumbai market witnessed limited trade today as traders were more interested and busy in festival activities. However, since the market had witnessed higher buying in the last couple of days, cotton yarn prices were higher by ₹2-4 per kg. A trader from Mumbai market told Fibre2Fashion, “Buyers were keen to buy cotton yarn as they expected higher prices after Diwali. They considered current prices as bottom line. Mills are also quoting higher prices as they anticipate gains after the festival week.” However, several markets may see slow production in the first fortnight after Diwali as workers take one to two weeks to come back to work after the festival.”

In Mumbai, 60-carded yarn of warp and weft varieties were sold at ₹1,410-1,450 (approximately $16.77-$17.25) and ₹1,365-1,410 per 5 kg (approximately $15.94-$16.65) (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 $16.06-$16.53) per 4.5 kg, 44/46-carded warp at ₹254-262 (approximately $3.00-$3.12) 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 $3.31-3.35) per kg, according to trade sources.

Tiruppur market remained steady amid thin trade, but it also expected higher demand of cotton yarn after Diwali holidays. Traders said that the market did not see any price gain as of now. There may be higher demand after Diwali holidays. But cotton yarn prices may not gain. If cotton prices rise in the coming week, it may cause for increase in yarn prices. However, there is negligible possibility of gains in cotton prices due to the current crop arrival season.

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 $3.28-3.35) 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 $2.94-2.99) per kg, and 40 count carded cotton yarn at ₹252-257 (approximately $3.00-3.06) per kg.

In Gujarat, cotton prices came down by ₹1,000 per candy of 356 kg in the last couple of days. Higher arrival and limited buying from mills caused for decline in cotton prices. However, cotton arrival decreased today ahead of Diwali. Trade sources said that mandi yards remained closed in the state. Farmers will bring seed cotton after one week from now. Seed cotton prices were also traded lower due to higher moisture.

Cotton arrivals were low due to closure of mandi yards in Gujarat.  The arrival was estimated at 15,000 bales of 170 kg in the state. All-India arrivals were estimated at 75,000-80,000 bales. The benchmark Shankar-6 cotton of new season was quoted between ₹54,000-₹54,500 (approximately $654.18-$660.13) per candy of 356 kg, while southern mills were looking to buy cotton at ₹55,000-₹55,500 (approximately $666.08-$672.02) per candy. Seed cotton (Kapas) was traded at around ₹7,100-₹7,200 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)