Market sources said that price of cotton continued to rise in domestic market, and it neared to ₹85,000 per candy of 356 kg each today. ICE cotton noted some respite in early trade of previous session, but it ended with gentle gains. Costlier cotton forced spinning mills to raise prices of PC yarn by ₹5-7 per kg. PC yarn of both combed and carded varieties was quoted higher by the mills.

Traders said that PC yarn demand was slightly better, which is also supportive for price hike. Fabric manufacturers are buying as they are getting better trade enquiry from garment units for domestic supplies. Actually, an optimism for better demand was noticed in the entire value chain particularly for domestic summer buying.

Ludhiana, the country’s most prominent man-made yarn market, noted increase in prices by ₹5-7 per kg, while recycled PC and acrylic yarn remained steady. 30 count PC combed yarn (48/52) was sold higher by ₹5 at ₹285-295 per kg (GST extra). 30 count PC carded yarn (65/35) was also priced up by ₹5 at ₹245-255 per kg, according to Fibre2Fashion’s market insight tool TexPro. 20 count PC (recycled-O/E) PSF yarn (40/60) was traded higher at ₹175-185 per kg. Acrylic NM (2/48) was priced at ₹315-320 per kg and acrylic NM (2/32) at ₹265-270 per kg. PSF was noted stable at ₹123 per kg.

Meanwhile, yarn market is waiting for reaction in PSF due to increase in crude oil prices, which rose on Wednesday, erasing losses from the previous session, after industry data showed US crude stocks fell last week, underlining how tight global supplies are amid the hit to Russian output from economic sanctions on Moscow. Brent crude futures climbed $1.06 or 0.9 per cent to $116.54 a barrel. US West Texas Intermediate (WTI) crude futures rose 87 cents or 0.8 per cent to $110.14 a barrel. There was steady trend in intermediary products, which is likely to see spike in next month when Reliance Industries Limited will revise its sale prices. RIL’s prices are considered as benchmark for domestic market. RIL’s prices are currently as: PTA ₹88.90 per kg, MEG ₹62.30 per kg and MELT ₹97.64 per kg.

ICE cotton futures recorded gentle rise after losses in early session due to profit booking. A prominent agricultural research firm announced that cotton acreage will be slightly lower in the US in next season. Cotton contract for May 2022 closed at 130.04 cents, up 3 points; July 2022 closed at 126.29 cents, up 8 points; December 2022 closed at 108.01 cents, down 15 points.

Cotton prices surged by ₹100 to ₹200 per candy of 356 kg in north Indian markets for the third consecutive session on Wednesday amid continued buying by the mills, while daily arrivals declined in mandis. In Punjab, the prices were quoted at ₹82,700-84,000 per candy. In Haryana, cotton prices were quoted at ₹80,700-83,000 per candy. In Upper Rajasthan, cotton was sold at ₹83,000-84,000 per candy. In Lower Rajasthan, cotton was priced at ₹77,800-79,900 per candy.

Fibre2Fashion News Desk (KUL)