Cotton continues to dominate, so spinners and traders pile up

As the market is generally seen to be done dropping from here, cotton prices have been stable over the past month, which has helped to improve demand from spinning mills, dealers, and international trading houses. “A significant decrease in pricing from this point on is improbable. Buying by mills is partly due to this reason.

International trading firms are being encouraged to purchase by the recent 4 cent hike in pricing on Inter Continental Exchange, according to a trading source who wished to remain anonymous. The price of 29 mm and 30 mm cotton has been ₹54,100 and ₹55,500, respectively, on the cotton market over the past month.

The Indian Texpreneurs Federation (ITF), noted that although the prices are good right now, the buying power in the cotton trade has decreased due to a shortage of market liquidity. At the moment, 82.81 US cents a pound (₹54,425 for 356 kg of sweets) is the current price of March futures on ICE. On the exchange, the natural fiber is valued at 80.26 cents (₹52,750 per confectionery) in cash.

The Cotton Corporation of India (CCI) has so far purchased almost 20 lakh bales weighing 170 kg. A 40–50 lakh bale harvest might have been produced in a next month. Some could carry between 15 and 20 lakh bales. The textile industry is still operating at lower levels since there is a lack of visibility into significant orders, according to the ITF, even though overall cotton utilization has improved when compared to the previous two quarters.

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