India's cotton prices again breach ₹1 lakh per candy

According to traders, north India cotton prices jumped 5-6 per cent on Wednesday as spot sellers quoted higher prices after steep rise in futures trading. Market sentiments turned to bullish as ginners have very thin stocks for sale. Kapas arrival also reduced to negligible which shows depleting stocks with farmers. Traders said that new cotton arrival is likely to be delayed by 15-20 days.

Normally, new cotton crop reaches in north India in mid of September but this year late rains slowed crop progress. Therefore, cotton prices have fuelled despite the fact that there was thin trade in spot market. Spinning mills do not see any business sense to produce yarn by buying natural fibre at such a costly price.

According to Fibre2Fashion’s market insight tool TexPro, there was very thin trade due to negligible availability of cotton. But spot market prices gained ₹500-600 per maund of 37.2 kg. Cotton was sold at ₹10,000-10,200 per maund in Punjab, ₹9,500-10,000 per maund in Haryana and ₹11,000 -11,200 per maund in Upper Rajasthan. It translates to cotton prices of around ₹107,000 per candy of 356 kg. The natural fibre was sold at around ₹92,000-95,000 per candy in Punjab and Rajasthan. The cotton was sold at ₹91,000-93,000 per candy of 356 kg in lower Rajasthan.

Fibre2Fashion News Desk (KUL)