Current Market Developments:
- In the last couple of weeks cotton prices in most of the domestic markets remained range bound due to steady buying from spinning mills against sufficient supplies. Trading activities in most of the domestic markets have remained weak because of festive holidays.
- According to market sources, spinning mills are procuring cotton in limited quantities resulting in stable cotton prices in Rajasthan. Moreover, mills in the state have lower cotton stocks. Therefore, it is expected that there will be an increase in purchases by the mills in the coming days.
- In Tamil Nadu cotton prices remained steady tracking weak buying demand from weaving sector due to Diwali holidays. Cotton yarn prices in Tiruppur, with a 30-count combed at ₹258-263 per kg, and a 40 count at ₹280-285 per kg, without GST.
- In Maharashtra, steady increase in purchase by spinning mills has resulted in slight firmness in prices. Trade anticipates higher yarn demand in coming days mainly from the spinning mills. Cotton yarn prices in the state have remained steady. The reported price range for 60 carded yarn varieties offered around Rs 240-265 per kg, without GST.
- This year the cotton production is estimated to decline mainly in Maharashtra, Telangana, Karnataka, Andhra Pradesh, and Tamil Nadu due to deficient rainfall in major cotton belts. As per the First Advance Estimates by Ministry of Agriculture, Cotton production for 2023-24 is estimated to decline by 6 percent at 316.57 lakh bales (of 170 kg each) as compared to 336.6 lakh bales (of 170 kg each) during 2022-23 period.
Cotton Price Movement Vs Seasonality at Key Markets
State-wise Cotton Production & Acreage
Domestic Cotton Supply & Demand Scenario
Global Cotton Supply & Demand Scenario
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