Oct 11, 2022
Unseasonal rains drive cotton yarn prices up in south India
Oct 11, 2022
Unseasonal rains and buyers’ interest have pushed cotton yarn prices up by RS 2-10 per kg for various varieties in South India’s Mumbai and Tiruppur markets today. According to traders, the increase in cotton prices supported yarn prices. Buyers also rushed to the market in anticipation of a price rise, but it is unclear if the trend will sustain or not.
Cotton yarn prices in the Mumbai market witnessed a recovery of RS 2-10 per kg. The recent rise in cotton prices and the fear of possible hike encouraged buyers to come back to the market. “Buyers came back to the market, so prices gained up to RS 10 per kg. However, their buying interest in the coming days will decide the direction of the market,” a trader from Mumbai market told Fibre2Fashion.
In Mumbai, 60 count carded cotton yarn of warp and weft varieties were traded at RS 1,610-1,650 and RS 1,550-1,620 per 5 kg (GST extra) respectively. 60 combed warp was priced at RS 372-382 per kg. 80 carded (weft) cotton yarn was sold at RS 1,550-1,590 per 4.5 kg. 44/46 count carded cotton yarn (warp) was priced at RS 316-321 per kg. 40/41 count carded cotton yarn (warp) was sold at RS 295-305 per kg and 40/41 count combed yarn (warp) was priced at RS 322-335 per kg, according to Fibre2Fashion’s market insight tool TexPro.
In Tiruppur market, cotton yarn gained RS 5-10 per kg as buying interest increased slightly today. Rains in various states also supported cotton yarn prices. Last week, spinning mills had slashed yarn prices by around RS 30-40 per kg. “Last week’s steep fall in prices made cotton yarn attractive for buyers. The probability of price rise after recent rains also encouraged them. The market will now get direction from consistency in buying,” a trader from Tiruppur told Fibre2Fashion.
Today, 30 count combed cotton yarn was traded at RS 315-325 per kg (GST extra), 34 count combed at RS 320-330 per kg and 40 count combed at RS 335-345 per kg in the Tiruppur market. Cotton yarn of 30 count carded was sold at RS 295-300 per kg, 34 count carded at RS 300-305 per kg and 40 count carded at RS 305-315 per kg, as per TexPro.
In Gujarat, cotton prices increased by RS 2,000-3,000 per candy of 356 kg from last week as unseasonal rains delayed crop arrival and affected crop quality. Shankar-6 cotton was traded at RS 71,500-73,000 per candy. According to market sources, rains have supported market sentiments although the market direction is not clear yet. Farmers are not ready to sell seed cotton at current prices of RS 1,700-1,800 per maund of 20 kg. Meanwhile, spinning mills are delaying buying cotton from ginning mills due to a low demand from the weaving industry. Daily cotton arrival was at 10,000-11,000 bales of 170 kg each.
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