Cotton Prices Remain Stable in North Indian States Amid Spinning Mills Limited Purchases

New Delhi, June 27 (Commodities Control): Cotton prices stabilized on Thursday in the North Indian states of Punjab, Haryana, and Rajasthan due to limited purchases by spinning mills. The daily arrival of cotton in these markets also remained consistent.

On Wednesday, ICE cotton futures experienced a third consecutive day of price increases. The October-24 futures contract saw a rise of 0.38 cents to 74.59 cents, the December-24 contract increased by 0.27 cents to 75.34 cents, and the March-25 contract went up by 0.33 cents to 76.75 cents. However, a downward trend in ICE's electronic trading today softened these gains.

Adverse weather, including rainfall, has affected the cotton-producing areas in North India. Traders predict that cotton prices may rise in the future, as many spinning mills have low cotton stock, and the Cotton Corporation of India (CCI) is continuously increasing cotton prices. Kapas prices rose by Rs 100, while cottonseed prices increased by Rs 50 in these states.

The CCI has sold 32.70% of the cotton it purchased in the current crop season (starting October 1, 2023) to domestic mills as of June 25. From July 1, the corporation will also begin selling to traders. Of the total 32.84 lakh bales (one bale equals 170 kg) purchased in the 2023-24 crop season, 10.74 lakh bales have been sold by June 25, leaving a stock of 22.10 lakh bales.

Daily arrivals in the producing mandis of these states were 500 bales, consistent with the previous working day. Kapas prices were quoted between Rs 6,600 to Rs 7,100 per quintal in the mandis of Punjab and Haryana, and Rs 6,700 to Rs 7,200 per quintal in Upper Rajasthan. Cottonseed prices ranged from Rs 2,900 to Rs 3,250 in Punjab and Haryana and from Rs 3,000 to Rs 3,450 per quintal in Upper Rajasthan.

The domestic futures market saw a bullish trend in cotton prices today. The April-25 futures contract on NCDEX increased by Rs 5.5 to Rs 1,621 per 20 kg.

In Punjab, cotton spot delivery prices were quoted at Rs 5,775 to Rs 5,800 per maund, equivalent to Rs 55,000 to Rs 55,200 per candy. In Haryana, prices ranged from Rs 5,675 to Rs 5,700 per maund (Rs 54,000 to Rs 54,300 per candy), and in Upper Rajasthan, they ranged from Rs 5,500 to Rs 5,900 per maund (Rs 52,400 to Rs 56,200 per candy). In Pilani, Rajasthan, prices were between Rs 5,500 to Rs 5,900 per maund, and in Lower Rajasthan, prices were Rs 56,400 to Rs 56,600 per candy.



(By CommoditiesControl Bureau: +91-9820130172)