Trade sources from Mumbai said that spot prices for cotton yarn were steady because buyers were cautious for fresh buying. Buyers are expected to take interest again when they see strong lifting of grey and finished fabrics. Yarn prices had crossed a level of ₹400 per kg after cotton breached the mark of ₹90,000 per candy of 356 kg.

A broker told Fibre2Fashion that demand was better till March 25, which also supported price rise for yarn, but weaving units and handlooms owners virtually stopped buying in last week of March. Higher prices also discouraged them for buying.

Brokers said that traders and stockists were offering a discount of ₹2 per kg for forward deals. Traders expect summer clothing demand to increase in next week, which will lift sentiments for fabric and yarn market.

In Mumbai market, most yarn prices remained stable due to limited buying. 60 count carded cotton yarn of warp and weft varieties were traded higher at ₹2,150-2,200 per 5 kg and ₹2,000-2,050 per 5 kg respectively. Carded cotton yarn (44/46 count) of warp variety was traded at ₹2,040-2,080 per 5 kg. 80 count carded cotton yarn of weft variety was sold at ₹2,250-2,300 per 4.5 kg. 40 count carded cotton yarn (warp) was sold at ₹375-380 per kg. 40 count combed yarn (warp) was priced at ₹425-440 per kg. 

The knitwear hub of Tiruppur recorded mixed price trend. Few varieties of yarn noted slight price rise of ₹3-5 per kg, but other varieties remained stable. Traders said that demand from weaving units and handlooms was very limited. But mills were raising prices due to higher cost of cotton. However, the market expected better lifting in the days to come.  

In Tiruppur, 30 count combed cotton yarn was traded at ₹375-380 per kg, 34 count combed at ₹390-395 per kg and 40 count combed at ₹410-415 per kg. Cotton yarn of 30 count carded was sold at ₹340-345 per kg, 34 count carded at ₹350-355 per kg and 40 count carded at ₹369-370 per kg, according to Fibre2Fashion’s market insight tool TexPro.  

In the global market, ZCE cotton yarn May 2022 futures traded up by CNY 10 to CNY 28,330 per ton and September 2022 traded higher by CNY 20 at CNY 28,325 per MT today. ZCE cotton March lost CNY 30 to CNY 21,725 per MT and May contract traded down by CNY 75 to CNY 21,075 per MT.

ICE cotton futures edged lower on Thursday, driven down by a stronger dollar and some investors locked in profits following a rise the day before. Cotton contract for May 2022 closed at 135.69 cents, down 415 points; July 2022 closed at 132.07 cents, down 413 points; December 2022 closed at 111.28 cents, down 116 points. 

In Gujarat, Cotton prices weakened on Friday amid subdued demand from mills, while daily arrivals were stable. Bearish trend in ICE cotton also dampened sentiments in the Indian market. A grade cotton was sold at ₹90,000-91,000 per candy, B grade at ₹89,000-90,000 per candy and average grade cotton at ₹88,000-88,500 per candy. V797 variety was quoted at ₹48,000-50,500 per candy.

Fibre2Fashion News Desk (KUL)