South Indian traders are seeking more positive sentiment in the yarn trade. A surge in cotton prices has stimulated yarn buying from the weaving industry, while cotton prices in Mumbai have held steady in the face of increased buying. Expectations are high in south India’s Tiruppur market for further demand for cotton yarn, which could push prices upward. However, cotton yarn prices in Tiruppur have decreased by Rs. 5-7 per kg following a monthly review by spinning mills. These mills reduced the ex-mill rate by Rs. 20 per kg.