Foreign news on March 17, cotton yarn prices in southern India have been difficult to maintain at current levels because buyers are hesitant after the recent fall in cotton prices.
Traders said besides slowing demand, post-Holi labor shortage and the end of the financial year also contributed to the subdued sentiment. Neither cotton yarn demand nor prices are expected to improve in the near future.
Mumbai has noticed a bearish trend in cotton yarn with prices remaining stable but as traders pointed out, prices are not trading at the moment.
Bharat Shah, a Mumbai-based trader, said: “After Holi, workers have not returned from their hometowns in North India. In addition, due to the last two weeks of the 2022/23 financial year, businessmen They are busy with annual accounting and settlement transactions. Smooth production is not their top priority these two weeks. The mood may last till the end of this month.”
Mumbai 60 thick Carded cotton yarn is trading at Rs 1525-1540 and Rs 1400-1450 per 5 kg, 60 combed warp yarn is trading at Rs 342-345 per kg, 80 count carded cotton yarn is trading at Rs 1440-1480 per 4.5 kg, 44/46 carded yarn The price of warp yarn is 280-285 rupees per kilogram, and the price of 40/41 carded cotton yarn is 260-268 rupees per kilogram.
Tirupur also noted subdued sentiment as buyers have withdrawn from the market following the recent pullback in cotton prices.
Trade sources said that the recent decline in ICE cotton futures and domestic cotton is related to the financial turmoil in the United States.
Weak cotton prices are discouraging buyers as they expect further falls in the near future.
A senior official of a textile company said that buyers are not prepared to buy 1 kg more raw material than the actual urgent demand. Prices are expected to remain weak until the end of March.
The trading price of 30-count combed cotton yarn in Tirupur is 280-285 rupees per kilogram (extra consumption tax), 34-count combed cotton yarn is 292-297 rupees per kilogram, 40 Count combed cotton yarn is 308-312 rupees per kilogram.
The price of Kupang cotton is 60,500-61,500 rupees/kandi (356 kg).
Trade sources said Kupang cotton prices have weakened further as textile traders are unwilling to buy in large quantities.
The reduced arrival of cotton failed to support prices. Recent rainfall and thunderstorms in the central and southern regions have affected the daily arrival of cotton, which has dropped by about 115,000 bales (1 bale = 170 kg) from 150,000-160,000 bales last week.
The arrival volume of Kupang cotton is expected to be 25,000-30,000 bales.
