Cotton Prices Rise in North India Due to Spinning Mills' Purchases at Lower Rates

New Delhi, June 19 (Commodities Control): Cotton prices surged on Wednesday in the North Indian states of Punjab, Haryana, and Rajasthan. The increase is attributed to increased purchases by spinning mills capitalizing on lower prices, while daily arrivals of Kapas in these markets remained low.

On Tuesday, ICE cotton futures showed a bullish trend. The July-24 futures contract increased by 1.09 cents to 71.03 cents, the December-24 futures contract remained stable at 72.76 cents, and the March-25 futures contract rose by 1.00 cent to 74.05 cents. ICE electronic trading of cotton futures was closed today due to a holiday.

Traders reported that the rise in ICE cotton futures on Tuesday was due to short-covering before the holiday and positive sentiment from equity and oil markets. Spinning mills in North India took advantage of lower prices to increase their purchases, boosting domestic market prices.

However, local demand for cotton yarn remains weaker than usual, and cotton exports are currently not profitable, suggesting no significant price increase in the near future. Prices for Kapas and cotton seed stayed stable in these states.

In the ongoing Kharif season, as of June 10, Kapas sowing in Haryana covered only 11.87 lakh hectares against the state government's target of 16.87 lakh hectares. By this time last year, 15.50 lakh hectares had been sown.

Kapas arrivals in these states' markets totaled 600 bales, each weighing 170 kg, compared to 700 bales on the previous working day.

In the mandis of Punjab and Haryana, Kapas prices ranged from Rs 6,500 to Rs 6,800 per quintal, and from Rs 6,600 to Rs 6,900 per quintal in Upper Rajasthan. Cottonseed prices were quoted between Rs 2,650 and Rs 3,050 per quintal in Punjab and Haryana, and between Rs 2,700 and Rs 3,300 per quintal in Upper Rajasthan.

Domestic futures markets showed a mixed trend for cotton today. Kapas prices increased by one rupee to Rs 1,565 per 20 kg in the April-25 futures contract on NCDEX. Conversely, cotton prices on MCX fell by Rs 60 to Rs 56,310 per candy in the July-24 futures contract.

Spot delivery prices for cotton in Punjab were quoted between Rs 5,675 and Rs 5,700 per maund (Rs 54,000 to Rs 54,300 per candy). In Haryana, prices were Rs 5,600 to Rs 5,625 per maund (Rs 53,300 to Rs 53,500 per candy).

In Upper Rajasthan, prices ranged from Rs 5,400 to Rs 5,825 per maund (Rs 51,400 to Rs 55,400 per candy). In Pilani, Rajasthan, prices were Rs 5,400 to Rs 5,825 per maund. In Lower Rajasthan, cotton was priced at Rs 56,000 to Rs 56,200 per candy for spot delivery.



(By CommoditiesControl Bureau: +91-9820130172)