Cold wave grips north India; Extends wait for demand of cotton yarn

“Demand dampened again in Delhi market as buyers were absent from the market due to bad weather. Millers from northern India raised cotton yarn prices by ₹10-15 per kg on Wednesday but they had to backtrack due to poor demand,” Suresh Gupta, patron of Delhi Yarn Merchant Association told Fibre2Fashion.

According to market sources, mills had to offer discount of ₹5-7 per kg to woo the buyers. Another trader said such practice from the millers disrupted market activities as it created confusion on price front.

Ludhiana and Panipat yarn market also followed same trend. According to traders, the market remained under pressure due to poor buying. The demand can improve when temperature goes upside. Downstream businessmen were reluctant for fresh buying. Traders said that fabric manufacturers were buying only for immediate demand.

In Ludhiana, cotton yarn of 20 and 30 counts in combed variety were traded steady at ₹360-370 per kg and ₹390-400 per kg respectively. Carded yarn in 30 counts was quoted at ₹360-370 per kg. In Delhi, cotton yarn 30 count combed was traded steady at ₹400-410 per kg, 40 count combed at ₹430-440 per kg, 30 count carded at ₹350-360 per kg and 40 count at ₹400-410 per kg, according to Fibre2Fashion’s market analysis tool TexPro. 10 count weaving (O/E) yarn was quoted at ₹125-130 per kg, while 16 count weaving (O/E) at ₹165-170 per kg.

In Panipat, cotton yarn prices were recorded as: 10s recycled yarn (white) at ₹95-100 per kg, 10s recycled yarn (dyed) ₹90-100 per kg, and 20s recycled yarn (dyed) ₹100-125 per kg. 10s optical yarn was traded at ₹90-100 per kg in the market.

Meanwhile, cotton prices softened by ₹200-300 per candy of 356 kg in north Indian market for the second consecutive session on Thursday amid reduced demand from mills, while daily arrivals also recorded a decrease. In Punjab, cotton was quoted at ₹73,000-74,000 per candy. In Haryana, cotton was priced at ₹70,600-72,500 per candy. In Upper Rajasthan, cotton was sold at ₹73,200-Rs 73,900 per candy. In Lower Rajasthan, cotton prices ranged between ₹71,000-73,000 per candy.

ICE cotton futures closed with mixed trend in Wednesday session. The weekly export sales report from the United States Department of Agriculture (USDA) was highly awaited by investors. Cotton contract for March 2022 closed at 126.33 cents, down 100 points; May 2022 closed at 123.03 cents, down 86 points; December 2022 closed at 102.95 cents, up 52 points. A trade analyst said, “We are seeing a pause after the market has run up 7-8 cents and it seems to be waiting for the next round of news, which would be tomorrow’s sales report.”

ZCE cotton recorded no trade today due to weeklong holiday on account of the Chinese New Year.

Fibre2Fashion News Desk (KUL)