India: Cotton prices boost on mill demand

Company Performance

India: Cotton prices boost on mill demand

Cotton prices have increased by nearly Rs 1000-1200 per candy in last 10 days on robust mill demand and buying is fuelled by export orders for yarns. As the INR become too weak against US Dollar, Indian spinners’ quotations become highly competitive among buyers. It is learned that 20s carded cotton prices from India is equivalent to medium staple cotton fiber prices in Chinese local market! So, the competitiveness of Indian cotton yarn is driving the demand for the commodity in recent weeks.

Also, as the power situation has improved in the southern state of Tamil Nadu, the mills have improved their run rate and thereby increased the cotton appetite. On the other hand, as the cotton season has come to an end in the country, availability of good quality cotton is poor and arrival has dropped significantly. Thus, overall scenario for cotton has changed in India and true demand has jacked up prices.

In Gujarat Sankar-6 cotton traded at Rs 33,500-34,000 a candy (355.6 kg). B-grade cotton sold at Rs 32,800-33,000 a candy. V-797 cotton was offered at Rs 26,900-27,400 a candy. In Maharashtra, A grade cotton low micronaire quoted at Rs 32,900-33,500 a candy and A grade high micronaire cotton 29+ MM quoted at 33,200-33,700 a candy. J-34 RG quoted in the range of Rs 3,610-3,680 a maund in Punjab, Rs 3,540-3,590 a maund in Haryana and Rs 3,510-3,540 a maund in Rajasthan.