Foreign news on July 14, the cotton yarn market in northern India is still bearish, with Ludhiana falling by 3 rupees per kilogram, but Delhi is stable. Manufacturing demand remains subdued, trade sources said.
Rains may also hamper production activities in northern Indian states. However, there are reports that Chinese importers have placed orders with several spinning mills. Some traders believe the market may react to these trade moves. Panipat combed cotton prices have come down, but recycled cotton yarn remains at previous levels.
Cotton yarn prices in Ludhiana fell by Rs 3 per kg. Demand in downstream industries remains sluggish. But cotton yarn export orders from China may provide support in the coming days.
Gulshan Jain, a trader in Ludhiana, said: “There is news in the market about Chinese cotton yarn export orders. Several factories have managed to obtain orders from Chinese buyers. . Their purchase of cotton yarn coincides with the rise in cotton futures prices on the Intercontinental Exchange (ICE).”
Cotton yarn prices in Delhi remain stable. Market sentiment is weak due to poor domestic industry demand. A trader in Delhi said: “Affected by rainfall, activities in the manufacturing and garment industries in northern India may be affected. Some areas in Ludhiana were forced to close due to flooding of nearby drainage systems, and there are several local printing and dyeing factories. . This may have a negative impact on market sentiment as the manufacturing industry may slow down further after the disruption to the reprocessing industry.”
Panipat recycled yarn prices have not shown any significant Changes, but combed cotton fell back slightly. The price of recycled yarn remains at the previous price. The spinning mills have two days off every week to reduce the consumption of combers, so the price has dropped by 4 rupees per kilogram. However, recycled yarn prices remain stable.
Cotton prices in northern India remained stable due to limited purchases by spinning mills. Traders say the current harvest is nearing its end and arrivals have dropped to negligible levels. Spinners are selling their cotton stocks. In northern India, the expected cotton arrival volume is about 800 bales (170 kg/bundle).
If the weather remains good, the new crop will arrive in northern India in the first week of September. Recent flooding and excess rainfall have not affected northern cotton. Instead, rainfall provides much-needed moisture to crops. Traders, however, said losses could occur as delayed arrival of rains from the previous season affected crops.
