North Indian traders expect better demand for cotton yarn next week

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As production for the upcoming summer season is set to begin, traders in north India are expecting better demand for cotton yarn. While no significant trade took place on Thursday due to very weak demand, trade enquiries in Panipat and Ludhiana markets were encouraging, giving an indication of better demand in next week, according to traders.

In Ludhiana, spinners were trying to pass on additional cost on yarn buyers, and quoted prices higher by around ₹5-10 per kg. However, poor demand did not support price rise. “Fabrics and garment manufacturers were sceptical about demand from end users amid uncertain economic conditions. But traders were hopeful for better sentiments in the days to come,” a source told Fibre2Fashion.

Surinder Jain, president of Ludhiana Yarn Merchants Association also expects demand to pick up in next 3-4 days. “Summer clothing season is set to begin next week, so traders expect better trade movement.”

As production for the upcoming summer season is set to begin, traders in north India are expecting better demand for cotton yarn. While no significant trade took place on Thursday due to very weak demand, trade enquiries in Panipat and Ludhiana markets were encouraging, giving an indication of better demand in next week, according to traders.

Cotton yarn of 20 and 30 counts in combed variety were traded steady at ₹355-365 per kg and ₹375-385 per kg respectively in Ludhiana. Carded yarn in 30 counts was quoted at ₹360-370 per kg. In Delhi, cotton yarn of 30 count combed was traded steady at ₹345-355 per kg, 40 count combed at ₹410-420 per kg, 30 count carded at ₹320-340 per kg, and 40 count at ₹335-355 per kg, according to Fibre2Fashion’s market analysis tool TexPro. 10 count weaving (O/E) yarn was quoted at ₹125-130 per kg, while 16 count weaving (O/E) was at ₹165-170 per kg.

In Panipat also, yarn prices were ruling at previous level as trading activities remained very limited. The market recorded price of 10s recycled yarn (white) at ₹95-100 per kg, 10s recycled yarn (dyed) at ₹90-100 per kg, and 20s recycled yarn (dyed) at ₹100-125 per kg. 10s optical yarn was traded at ₹90-100 per kg in the market.

Delhi market also witnessed bearish tone on Thursday.

Meanwhile, cotton prices surged by ₹850-950 per candy of 356 kg in the markets of North Indian states for the second consecutive session on Thursday as stockists continued to remain active, while daily arrivals recorded a decline. In Punjab, the spot delivery prices were quoted at ₹71,100-72,200 per candy, as per TexPro. In Haryana, the spot delivery prices were quoted at ₹69,200-71,200 per candy. In Upper Rajasthan, the spot cotton was priced at ₹71,100-72,500 per candy.

In the global market, ZCE cotton yarn May 2022 futures traded up by CNY 105 to CNY 28,990 per ton, while September 2022 traded lower by CNY 5 at CNY 28,350 per MT today. ICE cotton futures posted triple digit gains on Wednesday, following a rally in the commodities market. Cotton contract for March 2022 closed at 123.95 cents, up 287 points; May 2022 closed at 120.45 cents, up 274 points; December 2022 closed at 99.18 cents, up 134 points. “Cotton is up as it has been mirroring the price movements of the crude oil market. There is also support coming as other commodities are also moving upwards,” said an analyst.
 

Fibre2Fashion News Desk (KUL)



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