Cotton yarn trade in North India remained very thin due to the continuing uncertainty in local and global markets. Though Russia and Ukraine are not major export destinations for Indian cotton yarn and textiles, exports to other destinations are likely to be disrupted due to unavailability of containers. As a result, cotton yarn prices stayed unchanged.
“The prolonged war between Russia and Ukraine is causing uneasiness in the entire value chain of textile industry. Non-availability of containers is current major problem which is causing for slower shipments. Traders and factory owners are reluctant to have deals in the time of high volatility in cotton prices,” Sanjay K Jain, Managing Director of TT Limited, told.
According to market sources from Delhi, there was no demand from downstream industry. Cash crunch and uncertainty are main cause of low confidence among market participants. Fabric manufacturers were avoiding having new deals as they were not confident about demand of fabric from garment industry. Buyers were trying to hold cash instead of creating stocks. Therefore, liquidity crunch was looming in the market. A trader from Ludhiana said that he was idle as there was no trade and there was no buyer in the market.
In Ludhiana, cotton yarn of 20 and 30 counts in combed variety were traded steady at Rs. 350-360 per kg and Rs. 365-375 per kg respectively. Carded yarn in 30 counts was quoted at Rs. 340-350 per kg, according to market insight tool TexPro.
In Delhi, cotton yarn was traded at previous levels amid thin trade. 30 count combed yarn was traded at Rs. 360-365 per kg, 40 count combed at Rs. 390-400 per kg, 30 count carded at Rs. 335-345 per kg and 40 count carded at Rs. 355-360 per kg, as per TexPro. 10 count weaving (O/E) yarn was quoted at Rs. 120-125 per kg, while 16 count weaving (O/E) at Rs. 160-165 per kg.
In Panipat, cotton yarn prices were recorded as: 10s recycled yarn (white) at Rs. 90-95 per kg, 10s recycled yarn (dyed) at Rs. 90-100 per kg, 20s recycled yarn (dyed) at Rs. 100-125 per kg. 10s optical yarn was traded at Rs. 90-100 per kg in the market. All the varieties of recycled yarn were noted at previous level as there was not much happening in the segment due to sluggish activities in the furnishing segment.
In the global market, ZCE cotton yarn May 2022 futures traded lower by CNY 45 at CNY 28,360 per ton and September 2022 traded flat at CNY 27,865 per MT today. ZCE cotton March lost CNY 20 and was at CNY 21,210 per MT, while May contract traded down by CNY 60 to CNY 20,230 per MT.
ICE cotton futures posted triple digit loss on Wednesday amid firmer dollar and also as speculators squared positions ahead of a weekly export sales report from the USDA. Cotton contract for May 2022 closed at 118.54 cents, down 421 points; July 2022 closed at 115.08 cents, down 414 points; and December 2022 closed at 100.81 cents, down 222 points. The dollar index rose sharply by 0.3 per cent against its rivals, raising the price of natural fibre for overseas purchasers.
In the north Indian states too, cotton prices softened by Rs. 100-20 per candy of 356 kg on Thursday amid reduced demand from mills at higher prices, while daily arrivals remained stable. In Punjab, the spot cotton was quoted at Rs. 74,200-75,200 per candy. In Haryana, cotton was sold at Rs. 71,800-74,000 per candy. In Upper Rajasthan, the prices were ruling at Rs. 75,800-76,300 per candy. In Lower Rajasthan, cotton prices were noted at Rs. 71,400-73,200 per candy.
