Cotton yarn prices may rise next week in south India's Tiruppur

Traders said that demand from the downstream industry seems to have improved. The political stability brought about by the win of BJP in assembly elections in four states, will boost economic development and may encourage end users for buying.

Purushottam Gupta, a trader from Tiruppur, told Fibre2Fashion that the market may see higher prices for cotton yarn as optimism has encouraged powerloom owners for fresh buying. He said that sluggish trend in summer clothing demand seems to be over, and buyers have begun buying at limited scale.

In Tiruppur, 30 count combed cotton yarn was traded at ₹355-365 per kg, 34 count combed at ₹365-370 per kg, and 40 count combed at ₹390-400 per kg. Cotton yarn of 30 count carded was sold at ₹315-320 per kg, 34 count carded at ₹325-330 per kg, and 40 count carded at ₹335-345 per kg, according to Fibre2Fashion’s market insight tool TexPro.

Mumbai market also witnessed higher demand in cotton yarn market. BN Ladda, who deals cotton yarn brokerage, said that prices remained stable, but demand improved due to better sentiments. Buyers’ confidence gained for better demand from downstream industry because BJP’s win has given positive signal to the market. However, there was an element of uncertainty also in the market as traders were facing liquidity crunch.

Traders explained that powerloom owners provide credit facility to retail and wholesale buyers who are delaying payments as they invested money in stock market. The stock market had seen steep fall after Russia-Ukraine crisis. Fabric manufacturers are not able to realise their due payments, so they are facing cash crunch.

In Mumbai market, yarn prices remained stable amid slightly better demand in optimistic market. 60 count carded cotton yarn of warp and weft varieties were traded at ₹1,900-2,000 per 5 kg and ₹1,710-1,780 per 5 kg respectively. Carded cotton yarn (44/46 count) of warp variety was traded at ₹1,710-1,750 per 5 kg. 80 count carded cotton yarn of weft variety was sold at ₹1,920-1,950 per 4.5 kg.

In the global market, ZCE cotton yarn May 2022 futures traded up by CNY 20 to CNY 28,470 per MT and September contract traded flat at CNY 27,935 per MT today. ZCE cotton March gained CNY 40 to CNY 21,385 per MT and May contract traded up by CNY 15 to CNY 20,230 per MT.

ICE cotton futures edged lower on Thursday as a stronger dollar outweighed support from a USDA report showing a small increase in weekly shipments. Cotton contract July 2022 closed at 113.03 cents, down 18 points; October closed at 104.79 cents, down 32 points; March 2023 closed at 97.75 cents, down 34 points. Meanwhile, the latest USDA weekly export sales report showed net sales of 354,200 bales (170 kg each) of cotton for 2021/2022, up 2 per cent from the previous week and 51 per cent from the prior four-week average.

In the south Indian state of Karnataka, cotton prices improved by ₹200-500 per candy of 356 kg amid higher buying by the spinning mills, while daily arrivals remained stagnant. In Devdurga mandi, 29 plus mm cotton was sold at ₹80,000-81,000 per candy. In Raichur mandi, 29 mm cotton was noted at ₹76,000-80,200 and per candy. Bijapur mandi recorded prices between ₹76,000-82,500 per candy.

Fibre2Fashion News Desk (KUL)