Foreign news on April 1, despite light trading on the first day of the new fiscal year, cotton yarn prices in northern India are expected to rise further because demand for summer clothing is expected to improve next week.
Cotton yarn prices held steady on Friday after rising raw material prices led to a sharp rise in cotton yarn prices last week.
A trader based in Delhi said: Purchase inquiries today were very limited because yesterday happened to be the end of the fiscal year and buyers were still busy checking accounts. However, trade activity is expected to improve next week.
Traders expect cotton yarn demand to improve across northern India, including Delhi and Ludhiana, as textile companies will have to buy cotton yarn, To meet summer clothing needs. Traders admit that rising cotton yarn prices have made buyers uneasy and cautious, but they are optimistic that there will be purchases to cater to future demand.
In northern India, cotton yarn prices rose sharply last week.
Panipat, a major hub for home textiles, expects an increase in export demand in the coming days. Sanjiv Davar, a yarn trader from Panipat, said export demand is expected to improve in the near future. The United States and the Gulf region are key markets for Panipat bed sheets and other home furnishings. Europe is also the main market for these products, but some areas are affected by the Russia-Ukraine war.
From a global perspective, the closing price of Zheng Cotton’s main contract on Friday was 21,740 yuan/ton, with a daily decline of 0.07%.
ICE’s main cotton futures contract fell 1.14 cents on Friday, settling at 134.55 cents/pound.
In northern India, cotton prices fell on Friday due to reduced demand from cotton mills, but daily arrivals improved. The bearish momentum of ICE cotton futures also puts pressure on Indian market sentiment.
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