South India’s cotton yarn market noted mixed trend. Yarn prices remained strong in Mumbai as mills were quoting higher rates despite weak demand. But carded cotton yarn slipped by Rs. 2-3 per kg in Tiruppur. Mills were in a hurry to sell yarn as trade will be disrupted in the last ten days of this month in West Bengal due to Durga puja festivities.
Mumbai market witnessed upside trend in cotton yarn prices. Mills were quoting prices higher by Rs. 5-10 per kg as their stocks were depleting due to closure of fresh production. A trader from Mumbai market told, “The market was still facing weak demand. Mills were quoting higher as they are trying to limit price disparity through price rise. Lower stocks also supported the trend despite poor buying.” 60 count carded cotton yarn of warp and weft varieties were traded at Rs. 1,830-1,850 and Rs. 1,725-1,800 per 5 kg (GST extra) respectively. 60 combed warp was priced at Rs. 440-470 per kg. 80 carded (weft) cotton yarn was sold at Rs. 1,820-1,870 per 4.5 kg. 44/46 count carded cotton yarn (warp) was priced at Rs. 348-355 per kg. 40/41 count carded cotton yarn (warp) was sold at Rs. 345-350 per kg. 40/41 count combed yarn (warp) was priced at Rs. 390-395 per kg, according to market insight tool TexPro.
However, cotton yarn prices further slipped in Tiruppur market. Traders said that carded cotton yarn was traded with a decline of Rs. 2-3 per kg. A trader from Tiruppur told, “There will be Durga Puja in the last week of this month in West Bengal. This will affect yarn supply during September 20 to 30. Lower buying from the Eastern State caused for down fall in carded yarn.” Traders feel that overall demand was also weak. Market sentiments remained weak. Today, 30 count combed cotton yarn was traded at Rs. 348-352 per kg (GST extra), 34 count combed at Rs. 360-365- per kg and 40 count combed at Rs. 365-370 per kg in the Tiruppur market. Cotton yarn of 30 count carded was sold at Rs. 325-330 per kg, 34 count carded at Rs. 332-335 per kg and 40 count carded at Rs. 337-342 per kg, as per TexPro.
In Gujarat, cotton prices remained steady despite reports of incessant rains in the state. New cotton arrival was around 500 bales of 170 kg in the entire Gujarat. Traders said that buyers are still hopeful of timely cotton arrival despite rains. If rains continue for few more days, crop delay will be unavoidable. Shankar-6 cotton was traded at Rs. 85,000-92,000 per candy of 356 kg in spot market of Gujarat. Sellers are offering Rs. 75,000 per candy for October delivery but trade was nominal for the next month.
November and December delivery cotton was also quoted at Rs. 75,000 per candy by sellers, but buyers were not keen for paying prices higher than Rs. 70,000 per candy. Buyers are taking interest for cotton futures in MCX as the prices are lower than the rates of MNCs.
