Seasonal shift may help boost the prices of cotton yarn in South India as production of summer clothing is likely to pick up in a few weeks. The industry is trying to adjust the production at present prices. Cotton yarn prices already gained in Mumbai as demand improved from the downstream industry. Buying increased in Tiruppur market too.
Cotton yarn prices were up by Rs. 3-4 per kg in Mumbai as demand rose. “Demand improved because the production of summer clothing is set to pick up in the next 2-3 weeks. The industry is trying to adjust present cotton yarn prices,” Mumbai-based trader Jai Kishan told. The consumer industry and traders are buying cotton yarn, and sentiments also improved in fabrics trade.
In Mumbai, 60 count carded cotton yarn of warp and weft varieties were traded at Rs. 1,540-1,570 and Rs. 1,440-1,490 per 5 kg (GST extra) respectively. 60 combed warp was priced at Rs. 345-350 per kg, 80 carded (weft) cotton yarn was sold at Rs. 1,470-1,490 per 4.5 kg, 44/46 count carded cotton yarn (warp) was priced at Rs.285-290 per kg, 40/41 count carded cotton yarn (warp) was sold at Rs. 272-278 per kg and 40/41 count combed yarn (warp) was priced at Rs. 292-295 per kg, according to market report
Market sentiments improved in Tiruppur despite the festival of Pongal during which production and trade are limited. Traders said that weaving industry is buying yarn as they need to plan for the summer season and cotton yarn prices are likely to pick up after the festival.
Today, 30 count combed cotton yarn was traded at Rs. 285-290 per kg (GST extra), 34 count combed at Rs. 300-305 per kg and 40 count combed at Rs. 310-315 per kg in the Tiruppur market. Cotton yarn of 30 count carded was sold at Rs. 255-260 per kg, 34 count carded at Rs. 265-270 per kg and 40 count carded at Rs. 270-275 per kg, as per market report.
In Gujarat, cotton prices went down by Rs. 500 to Rs. 62,500-63,000 per candy of 356 kg. Ginners are still facing a disparity of Rs. 3,000-4,000 per candy. Weaker demand from spinning mills and MNCs caused the decline in cotton prices. According to the traders, farmers are still reluctant to sell seed cotton (narma) which was traded at Rs. 1,750-1,800 per 20 kg. However, optimism in yarn trade could be positive for the market.
