South Indian cotton yarn market may remain bearish until March end

The Mumbai market has noted a bearish trend in cotton yarn, with prices remaining stable, but no trade occurring at current prices, as traders have indicated. "After Holi, workers have yet to come back from their native places in North India. In addition, businessmen are busy with annual accounting and squaring up trades due to the last fortnight of the current financial year 2022-23. Smooth production is not their top priority in the current fortnight. Market sentiment is likely to remain bearish until the end of this month," Bharat Shah, a Mumbai-based trader told Fibre2Fashion. 

In Mumbai, 60 count carded cotton yarn of warp and weft varieties were traded at ₹1,525-1,540 and ₹1,400-1,450 per 5 kg (GST extra) respectively. 60 combed warp was priced at ₹342-345 per kg; 80 count carded (weft) cotton yarn was sold at ₹1,440-1,480 per 4.5 kg; 44/46 count carded cotton yarn (warp) was priced at ₹280-285 per kg; 40/41 count carded cotton yarn (warp) was sold at ₹260-268 per kg and 40/41 count combed yarn (warp) was priced at ₹290-303 per kg, according to Fibre2Fashion’s market insight tool TexPro.

The Tiruppur market has also noted a weak sentiment, as buyers have backtracked from the market after the recent easing in cotton prices. Trade sources have said that the recent decline in ICE cotton and domestic cotton was linked to financial turmoil in the US. The weakness in cotton has discouraged buyers as they expect a further fall in the near future. A top official of a textile company has said that buyers were not ready to purchase even one kg more raw material than their actual immediate need. Prices are expected to remain weak until the end of March. 

In Tiruppur, 30 count combed cotton yarn was traded at ₹280-285 per kg (GST extra), 34 count combed at ₹292-297 per kg and 40 count combed at ₹308-312 per kg. Cotton yarn of 30 count carded was sold at ₹255-260 per kg, 34 count carded at ₹265-270 per kg and 40 count carded at ₹270-275 per kg, as per TexPro. 

In Gujarat, cotton was priced at ₹60,500-61,500 per candy of 356 kg. Trade sources have said that cotton prices have softened further in Gujarat, as spinners were not keen on buying a lot. Lower cotton arrival also failed to support prices. Recent rains and thunderstorms in central and southern parts of the country have disrupted daily cotton arrival, which has come down to around 115,000 bales of 170 kg from 150,000-160,000 bales in the last week. Gujarat’s arrival was also estimated at 25,000-30,000 bales. 

Fibre2Fashion News Desk (KUL)