A trade source said that spinning mills were increasing their offer prices as they are getting costlier cotton. Fabric producers were buying yarn in the anticipation of more price hike and better demand in the near future. Buyers’ confidence gained for better demand from downstream industry. Recent price rise in cotton also justified costlier yarn prices. According to the traders, garment units are getting orders from retailers and brands.

In Mumbai market, yarn prices increased by ₹10 per kg amid slightly better demand from garment units. 60 count carded cotton yarn of warp and weft varieties were traded at ₹1,910-2,010 per 5 kg and ₹1,720-1,790 per 5 kg respectively. Carded cotton yarn (44/46 count) of warp variety was traded at ₹1,720-1,760 per 5 kg. 80 count carded cotton yarn of weft variety was sold at ₹1,930-1.960 per 4.5 kg.

Tiruppur market also recorded higher demand from powerloom operators as they were getting orders from garment units. A trader from Tiruppur said that the “trade activities were better than last week. Buyers coming in the market are serious for fresh buying. Earlier, they were negotiating for prices but reluctant to place order. Today, market conditions changed in one week.”

But export demand was still uncertain despite continued talks between Russia and Ukraine. Fresh export orders and shipment schedules are disrupted due to war in these countries. Continued talks between the leaders of these countries has raised hopes for mutually acceptable agreement for ceasefire. Traders said that exporters and the market at large are monitoring recent developments. If a peace deal is achieved, exporters will have better confidence for new orders and smooth shipments.

In Tiruppur market, cotton yarn of 30 count combed, 40 count combed and 40 count carded increased by ₹2-5 per kg. 30 count combed cotton yarn was traded at ₹360-370 per kg, 34 count combed at ₹365-375 per kg and 40 count combed at ₹390-405 per kg. Cotton yarn of 30 count carded was sold at ₹330-325 per kg, 34 count carded at ₹330-345 per kg and 40 count carded at ₹340-350 per kg, according to Fibre2Fashion’s market insight tool TexPro.

In the global market, ZCE cotton yarn May 2022 futures traded down by CNY 390 to CNY 27,955 and September contract traded down by CNY 180 to CNY 27,535 per MT today. ZCE cotton March lost CNY 230 and was at CNY 21,120 per MT, and May contract traded down by CNY 190 to CNY 19,990 per MT.

ICE cotton futures posted triple digit loss on Monday, following a sell-off in broader commodities markets, while continued COVID-19 lockdowns in China impacted on mood. Cotton contract for May 22 closed at 118.77 cents, down 226 points, Jul 22 closed at 115.12 cents, down 167 points, Dec 22 closed at 102.22 cents, down 202 points.

Cotton prices improved in Karnataka for the second consecutive session on Tuesday amid increased buying by spinning mills, while daily arrivals remained stagnant. In Devdurga mandi, the price of 29 plus mm cotton was ruling between ₹80,000-81,000 per candy of 356 kg each. In Raichur mandi, 29 mm cotton was priced at ₹76,000-80,200 per candy. In Bijapur, cotton prices ranged from ₹78,000-84,000 per candy. 

Fibre2Fashion News Desk (KUL)