Foreign news reported on February 5 that in Tiruppur, the knitwear center in southern India, cotton yarn prices rose due to demand from exporters. However, in Mumbai region, cotton yarn prices fell by Rs 20-25 per 5 kg due to weak demand due to cold wave in the northern parts of the country. The northern region has a large number of garment factories.
In the Tirupur market, despite export demand, price gains were limited as demand from the north of the country did not support market sentiment. An experienced businessman in Tirupur said demand from the south has not started yet, but the market has received support from demand from exporters.
In the Tirupur market, the price of 30-count cotton yarn is 370-375 rupees per kilogram, 34-count cotton yarn is 375-385 rupees, and 40-count cotton yarn is 390-400 rupees.
On the other hand, traders in Mumbai said that the cold wave in northern India has hurt local market demand. Northern India is a large readymade garments hub and cold weather delays summer demand. Meanwhile, processing plants and manufacturers are keeping a close eye on weather conditions and will ramp up production whenever weather improves in the north of the country.
Intercontinental Exchange (ICE) cotton futures ended lower on Friday as a stronger dollar made it more expensive for overseas buyers, but cotton prices fell due to strong demand. Prices rose for the 8th consecutive week.
ICE’s front-month March cotton contract fell 0.88 cents, settling at 126.74 cents/pound.
In Gujarat, cotton prices held steady on Friday as daily arrivals remained stable due to limited demand from cotton mills.
