By admin       2019-01-31

January 30, 2019 - Cotton prices have softened further, despite a lower crop, on weak demand from both yarn mills and overseas markets. Cotton prices are now hovering around ₹42,500-44,000 levels per candy (356 kg each), a decline of about a tenth over the comparative prices in October. At the beginning of the cotton harvest season in October, cotton prices were around ₹47,000. Trade sources said the poor offtake by mills, which are saddled with yarn stocks, amidst rising arrivals and sluggish exports has resulted in a softening trend. Also, multinationals have stayed away from purchases on lack of export parity as the prices in the domestic market are higher than in the global market. The trade is keenly awaiting the outcome of the ongoing talks between the US and China, two large markets. The outcome of the US-China trade talks could set the direction for cotton prices in the days ahead. “Uncertainty still looms over the trade truce between the US and China. This is causing a range-bound movement for cotton. Indian cotton prices have now bottomed out as there is no room for further correction. Ginners are already facing costly inputs due to the increased minimum support price (MSP),” said Atul Ganatra, President, Cotton Association of India (CAI), the apex trade body.

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